Question
hale's one-stop gas and auto service compete with Murray's gas and service mart. the local demand is given by P=2.5-0.01Q. Hale's MC function is MCH:
hale's one-stop gas and auto service compete with Murray's gas and service mart. the local demand is given by P=2.5-0.01Q.
Hale's MC function is MCH: qH=0.35qH
Murray's MC function is MCM: qM=0.3qM
find hale's and Murray's reaction function; then find the Cournot solution. (price and quantities)
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To find Hales reaction function we need to find Hales profitmaximizing quantity by setting marginal ...
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
