Question
A market has inverse demand function P = 37 - (q 1 + q 2 ) where q 1 is the quantity produced by firm
A market has inverse demand function
P = 37 - (q1 + q2)
where q1 is the quantity produced by firm 1 and q2 is the quantity produced by firm 2.
The two firms have identical cost functions, with marginal cost MC = 7.
What is firm 1's best response function?
A market has inverse demand function
P = 37 - (q1 + q2)
where q1 is the quantity produced by firm 1 and q2 is the quantity produced by firm 2.
The two firms have identical cost functions, with marginal cost MC = 7.
What is firm 1's best response function?
A.q1 = 15 - q2/2
B.q1 = 30 - q2/2
C.q1 = 22 - q2
D. q1 = 37 + q2
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Technology Ventures From Idea To Enterprise From Idea To Enterprise
Authors: Richard C Dorf, Byers
3rd Global Edition
9780071289214
