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Consider a noncollusive duopoly model with both firms supplying bottled drinking water. The marginal cost for each firm is $1.25. The market demand is shown
Consider a noncollusive duopoly model with both firms supplying bottled drinking water. The marginal cost for each firm is $1.25. The market demand is shown by the figure on the right. Let us assume that the two firms supplying bottled drinking water are Firm A and Firm B. The price charged by Firm A is denoted as p, and the price charged by Firm B is denoted as pg. Find the demand functions for each of the firms. Ifpp s $7, then demand for Firm A's bottled drinking water is: |:| thousand if py pg If pg pp (Round your responses to two decimal places.) Price Demand 0.5 1 16 2 25 3 35 4 Quantity (in thousands) 4.5 5
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