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Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 658 - 8 Qb. The marginal cost for firm 1 is given
Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 658 - 8 Qb. The marginal cost for firm 1 is given by mc1 = 12 Q. The marginal cost for firm 2 is given by mc2 = 7 Q. (Assume firm 1 has a fixed cost of $ 143 and firm 2 has a fixed cost of $ 123 .) How much DWL does the duopoly cause ? Answer is 1148.79
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Strategic Management And Business Policy Toward Global Sustainability
Authors: Thomas L. Wheelen, J. David Hunger
13th Edition
9780132998079, 132998076, 978-0132153225
