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Consider the following game in which two firms decide how much of a homogeneous good to produce. The annual profit payoffs for each firm are
Consider the following game in which two firms decide how much of a homogeneous good to produce. The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A's payoffs appear first in the payoff pairs: Find equilibrium quantity in this oligopoly market.
Firm B - low output Firm B high output
Firm A - low output Profit of A:25 / Profit of B:25 Profit of A:0 / Profit of B:35
Firm B - high output Profit of A:30/ Profit of B:5 Profit of A:15 / Profit of B:15
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