Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

All information given. Thank you in advance Two Cournot duopolists compete in a market with inverse demand given by p = 32.00 - 20, where

All information given. Thank you in advance

image text in transcribed
Two Cournot duopolists compete in a market with inverse demand given by p = 32.00 - 20, where p is the per-unit price, q, is the output for firm i (either firm 1 or firm 2), and Q = q1 + q2. Both firms face constant marginal costs of $2 per unit. Assume no fixed costs. What is the optimal output for firm 1? (Round to two decimals if necessary.) What is the optimal output for firm 2? (Round to two decimals if necessary.) Part 2 (1 point) See Hint What is the equilibrium price in this market? $ (Round to two decimals if necessary.) Part 3 (2 points) See Hint What is the profit for each firm? Firm 1 profit: $ (Round to two decimals if necessary.) Firm 2 profit: $ (Round to two decimals if necessary.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics A Step By Step Approach

Authors: Allan Bluman

8th Edition

73386103, 978-0073386102

Students also viewed these Economics questions