Question
2.The inverse market demand in a homogeneous-product Cournot duopoly is P = 200 3( Q 1+ Q 2) and costs are C 1( Q 1)
2.The inverse market demand in a homogeneous-product Cournot duopoly isP= 200 3(Q1+Q2) and costs areC1(Q1) = 26Q1andC2(Q2) = 32Q2.
a.Determine the reaction function for each firm.
b.Calculate each firm's equilibrium output.
c.Calculate the equilibrium market price.
d.Calculate the profit each firm earns in equilibrium.
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
