Question
Consider a market of two (2) firms that produce the same thing. Market demand is P = 80 - Q and the marginal cost of
Consider a market of two (2) firms that produce the same thing. Market demand is P = 80 - Q and the marginal cost of production is $10 for both firms. If firms compete through price, what will be the expected market quantity and market price?
Q = 140, P = $10
Q = 35, P = $45
Q = 70, P = $10
Q = 46.7, P = $33.33
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Foundations of Mathematical Economics
Authors: Michael Carter
1st edition
262531925, 978-0262531924
