Question
3. Two firm in a market that has the inverse demand function P=100-3Q. Firm 1 cost function is C(Q)=4Q, and firm2 cost function s C(Q)=4Q.
3. Two firm in a market that has the inverse demand function P=100-3Q. Firm 1 cost function is C(Q)=4Q, and firm2 cost function s C(Q)=4Q. Assuming a Cournot equilibrium,Determine the following
a. Output of firm 1
b. Output of firm 2
c. Graph the reactions function to scale and identify each and the horizontal and vertical intercepts.
d. Market price of the product
e. Profits of firm 1
f. Profits of firm 2
g. Assume that firms 1 and 2 collude, what will be the output and profits for each?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
