Question
Consider the market for a homogenous product. The inverse demand function is p(Q)=1000-Q. The market is served by 2 firms, i=1,2, Their total cost function
Consider the market for a homogenous product. The inverse demand function is p(Q)=1000-Q. The market is served by 2 firms, i=1,2, Their total cost function is Ci(qi) =100qi
Suppose that the two firms compete setting quantities simultaneously
- Find and draw the best response functions of the 2 firms
- Find the equilibrium quantities price and profits
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Principles Of Microeconomics 2e By OpenStax
Authors: OpenStax
2nd Edition
1947172344, 978-1947172340
