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5. Gourmet competition Consider a market populated by two firms (firm 1 and firm 2) that. compete a la Cournot with homogeneous products. (Inverse) market
5. Gourmet competition Consider a market populated by two firms (firm 1 and firm 2) that. compete a la Cournot with homogeneous products. (Inverse) market demand is given by p = a Q where Q = q] + qg. The two rms have marginal costs respectively equal to (:1 and c2. 0 Find the Nash equilibrium of the one-shot game. 0 Suppose that 60% of the marginal cost of the two rms consists of labor costs and 40% of fuel costs. 1What is the effect of a 12% increase in the fuel price on the equilibrium price
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