Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please note: $0 marginal costs q1=90-2p1+1p2 q2=90-2p2+1p1 also find total quantity supplied Suppose that identical duopoly firms have constant marginal costs of $10 per unit.

please note:

$0 marginal costs

q1=90-2p1+1p2

q2=90-2p2+1p1

also find total quantity supplied

image text in transcribed
Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q1 = 40-2p1 + 1p2. where q, is Firm 1's output, p, is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 40-2p2 + 1p1. Solve for the Bertrand equilibrium. In equilibrium, p, equals $ and p2 equals $ (Enter numeric responses rounded to two decimal places.) At these prices, q, equals and q2 equals (Enter numeric responses rounded to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Textbook Of Mathematical Economics

Authors: Dr Chandrakant Singh

1st Edition

9353140986, 9789353140984

More Books

Students also viewed these Economics questions