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Hi, may I know.. how to solve this? {G} {*1} There are two rms producing homogeneous product A. Each rm incurs a marginal cost of
Hi, may I know.. how to solve this?
{G} {*1} There are two rms producing homogeneous product A. Each rm incurs a marginal cost of Ftlvt2. The inverse demand curve is given by P=1D2Q. m m} Solve for Bertrand equilibrium market output. [2 Marks] Will a rm prots if it change its price? Why? [2 Marks] Consider the following data for a Staokelberg oligopolv. .- Q I {Ii} The inverse demand curve is P=1. lQLF} The leader cost structure is GLiLlF 159:. The follower's cost structure is CF{QF]=25-QF. The follower's best response function is QF= 331.25 {LSQL The leader output at equilibrium is 332.9 units. Determine the equilibrium output level for the follower. [3 Marks] Calculate the prots for the leader and the follower. [B Marks]Step by Step Solution
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