Question
Complete the following table using the inverse demand curve: P = 340 - 2Q). Assume that firm one's marginal cost equals $100 and firm two's
Complete the following table using the inverse demand curve: P = 340 - 2Q). Assume that firm one's marginal cost equals $100 and firm two's marginal cost equals $40.
P = 340 - 2(q1 + q2)
P = (340 - 2q2) - 2q1
MR = 340 - 2q2 - 4q1
340 - 2q2 - 4q1 = 100
240 - 2q2 = 4q1
60 - 1/2q2 = qR1
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International Macroeconomics
Authors: Robert C. Feenstra, Alan M. Taylor
Fourth Edition
1319061729, 978-1319061722
