Question
Duopolists A and B, who sell differentiated but highly substitutable products, face the following demand curves: QA= 100 - 2PA+ 2PBand QB= 120 - 3PB+
Duopolists A and B, who sell differentiated but highly substitutable products, face the following demand curves:
QA= 100 - 2PA+ 2PBand QB= 120 - 3PB+ 2PA.Assume MC = 0 for both firms.
1. What are the profit-maximizing prices if they actindependently? PA1=$and PB1=$
2. What are the profit-maximizing prices if theycollude? PA2=$and PB2=$
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An Inquiry Into The Nature And Causes Of The Wealth Of Nations
Authors: Adam Smith, R H Campbell
1st Edition
0865970068, 9780865970069
