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Consider a duopoly formed by firms 1 and 2, producing a homogeneous good. The demand for this market is represented by the following function: P
Consider a duopoly formed by firms 1 and 2, producing a homogeneous good.
The demand for this market is represented by the following function:
P = 30 - Q
And the cost of both firms is given by
C (qi) = qi, i = 1,2.
(i)Assume that firms compete in quantity.Calculate the Cournot balance: quantity produced and profit for each firm and the market price.
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