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A lake supports a delicious variety of fish. The land around the lake is owned by two fisherman, so by state law both are
A lake supports a delicious variety of fish. The land around the lake is owned by two fisherman, so by state law both are free to fish as much as they like. Let FA and FB be the number of fish each catches, respectively. Suppose the price of fish is 150-FA-FB. Given this demand curve, it turns out that marginal revenue is 150-2FA-FB for fisherman A and 150-FA-2FB for fisherman B. What is the total number of fish by both in the Nash equilibrium?
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To find the Nash equilibrium in this scenario we need to determine the point at which neither fisher...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
