Question
Consider two ice cream vendors having the Cournot competition, this time the second vendor can produce the ice cream at a lower cost of
Consider two ice cream vendors having the Cournot competition, this time the second vendor can produce the ice cream at a lower cost of $3 per gallon. Hence the payoff functions (profits) are: 20 Ju (91, 92) (120 - 92)91 - 591 [u (91, 92) = (120 91+9) 92 392. 20 What is the Nash equilibrium in this case?
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Understanding Business Ethics
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