Question
A market consists of two firms. The market has a demand function P(Q) = 200 - 3Q. The cost function of both firms is C(Q)
A market consists of two firms. The market has a demand function P(Q) = 200 - 3Q. The cost function of both firms is C(Q) = 2Q.Assume a Cournot oligopoly. Determine the following:
The output of each firm. (4 points - Show your work)
The market price of the good (4 points - Show your work)
Graph the reaction function of each firm. Label each graph and each axis. (4 points )
The profits of each firm. (4 points - Show your work)
If the firms collude, determine the output of each firm (4 points - Show your work)
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Classics In Game Theory
Authors: Harold William Kuhn
1st Edition
1400829151, 9781400829156
