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1. The market demand function for gelato in Summersville is Qd = 70 P/2. The cost function for producing gelato (for any firm) is TC
1. The market demand function for gelato in Summersville is Qd = 70 P/2. The cost function for producing gelato (for any firm) is TC = 5 + ZOQ. a. If there are TWO firms that choose quantities simultaneously, (Cournot Competition), calculate the reaction function of firm 1 and firm 2. b. Find the CournotNash equilibrium and show them in a graph. c. Now assume that the first firm gets to choose quantity before the entrant. What are the quantities that these firms will produce and the price in the market (Stackelberg Competition)? Why are these quantities different
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
