Question
Consider the Cournot duopoly with the demand function D(p) = 10 - p if p 10 and 0 if p > 10. The firms' marginal
Consider the Cournot duopoly with the demand function D(p) = 10 - p if p 10 and 0 if p > 10. The firms' marginal costs functions are constant, MCi(qi) = ci, i = 1,2, where c1 > c2. Is the following statement true or false? Explain.
"Firm 2 produces more than firm 1 in the equilibrium, that is, q2 C > q1 C ."
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
