Question
Give typed solution full explanation Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 135 - 13 Qb. The
Give typed solution full explanation
Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 135 - 13 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 18 Q. (Assume firm 1 has a fixed cost of $ 67 and firm 2 has a fixed cost of $ 129 .) What is level of total surplus in the duopoly equilibrium ?
Answer HINT: 469.84
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International Management Culture, Strategy and Behavior
Authors: Fred Luthans, Jonathan Doh
10th edition
1259705072, 1259705076, 978-1259705076
