Question
Consider a duopoly with two firms with the cost functions: Firm 1:C1(q1)=8q1 Firm 2:C2(q2)=8q2 The firms compete in a market with inverse demand p =
Consider a duopoly with two firms with the cost functions:
Firm 1:C1(q1)=8q1
Firm 2:C2(q2)=8q2
The firms compete in a market with inverse demand
p = 100 - 6Q
where Q=q1+q2.The firms compete in a Cournot fashion by choosing output simultaneously.
What is the Nash-Cournot equilibrium output of firm 1?
Round your answer to the nearest 10th (0.1)
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Principles Of Microeconomics 2e By OpenStax
Authors: OpenStax
2nd Edition
1947172344, 978-1947172340
