Question
a)The market demand curve in a Cournot duopoly is defined by P = 200 - [Q 1 + Q 2 ].If firm 1 has a
a)The market demand curve in a Cournot duopoly is defined by P = 200 - [Q1 + Q2].If firm 1 has a constant marginal cost of $50 per unit and firm 2 has a constant cost of $70 per unit, how many units will each firm produce in equilibrium?
b) Will the optimal quantity for firm 2 rise or fall if firm 1 increases their output?
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The Worldly Philosophers The Lives, Times And Ideas Of The Great Economic Thinkers
Authors: Robert L Heilbroner
7th Edition
068486214X, 9780684862149
