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Ahomogeneousproductsduopolyfacesamarketdemandfunctiongivenby P 210-3Q, where Q = Qi + Qz. Both firms have a constant marginal cost MC 30. WhatisFirm1'sprofit-maximizingquantity,giventhatFirm2producesanoutputof40 unitsperyear?WhatisFirm1'sprofit-maximizingquantitywhenFirm2produces10units peryear? Derivetheequationofeachfirm'sreactioncurveandthengraphthesecurves. What is the
AhomogeneousproductsduopolyfacesamarketdemandfunctiongivenbyP210-3Q, where Q = Qi + Qz. Both firms have a constant marginal cost MC30.
- WhatisFirm1'sprofit-maximizingquantity,giventhatFirm2producesanoutputof40 unitsperyear?WhatisFirm1'sprofit-maximizingquantitywhenFirm2produces10units peryear?
- Derivetheequationofeachfirm'sreactioncurveandthengraphthesecurves.
- What is the Cournot equilibrium quantity per firm and price in thismarket?
- What would the equilibrium quantity and price in this market be if it were perfectl y competitive?
- Whatwouldtheequilibriumquantityperfirmandpriceinthismarketbeifthetwofirms
colludedto set the monopoly price1
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