Question
Consider market that only has 2 large firms. The Inverse market demand is P = 100 Q. Firm 1 has a cost function of C
Consider market that only has 2 large firms. The Inverse market demand is P = 100 Q.
Firm 1 has a cost function of C1 = 2q1,
Firm 2 has a cost function of C2 = 3q2
Calculate Nash equilibrium outputs q1 and q2 of the 2 firms, using a Cournot model.
i. Give both firm's profit as a function of q1 and q2
ii. Compute the Nash equilibrium q1 and q2
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A Textbook Of Mathematical Economics
Authors: Dr Chandrakant Singh
1st Edition
9353140986, 9789353140984
