Question
Demand function of an oligopolistic market is P = a - bQ The market equilibrium is set by a Nash quantity competition between the firms.
Demand function of an oligopolistic market is P = a - bQ
The market equilibrium is set by a Nash quantity competition between the firms.
If the market demand decreases (so the demand curve shifts left/down) explain why the firms may find it more attractive to collude or to merge.
Explain what happens if Q is smaller- how would this drive the profit/ demand of the firm?
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Quantitative Methods for Business
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
13th edition
1285866312, 978-0357685648, 978-1285866314
