Question
A monopoly faces a market demand Q(p)= 2000-4p and has total cost C(q)=200q. Suppose that the government intervenes the market and splits the monopoly into
A monopoly faces a market demand Q(p)= 2000-4p and has total cost C(q)=200q. Suppose that the government intervenes the market and splits the monopoly into two firms with costs C1(q)=200q and C2(q)=200q. If the newly created firms compete in prices (Bertrand competition), then equilibrium market price after this intervention is?
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
