Question
Firms A & B are both making the same product in an isolated market. Demand function is: p=a-Q , while each firms cost function is:
Firms A & B are both making the same product in an isolated market. Demand function is: p=a-Q , while each firms cost function is: TC=c+dQ
a) what is equilibrium quantities of each firm, if firm A is the stackelberg leader
b) how does decreasing he fixed cost (c) effect the equilibrium quantities of the firms? Explain
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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
