Question
Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water. The
Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water. The market demand is given by the following schedule.
| Price | Quantity |
| 0 | 30 |
| 10 | 25 |
| 16 | 20 |
| 26 | 15 |
| 34 | 10 |
| 35 | 5 |
| 36 | 0 |
Construct a payoff table and find a Nash equilibrium from the table.
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Microeconomics
Authors: Michael Parkin
12th edition
133872297, 133872293, 978-1292094632
