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Solve clearly Two bus companies form a duopoly on the market for bus travelling in Belgium. The inverse demand function is p = 270 -

Solve clearly

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Two bus companies form a duopoly on the market for bus travelling in Belgium. The inverse demand function is p = 270 - 3Q, with Q the total demand for bus journeys in Belgium. Bus company 1's cost function is C(q1) = 1500 + 2491 and bus company 2's cost function is C(q2) = 750 + 4892. In these cost functions q1 is the number of bus journeys that bus company 1 offers and q2 is the number of bus journeys that bus company 2 offers. Assume that both bus companies compete with each other in the quantities they offer and determine the equilibrium price of bus journeys in Belgium.Two bus companies form a duopoly on the market for bus travelling in Belgium. The inverse demand function is p = 270 - 3Q, with Q the total demand for bus journeys in Belgium. Bus company 1's cost function is C(q1) = 1500 + 2491 and bus company 2's cost function is C(q2) = 750 + 4892. In these cost functions q1 is the number of bus journeys that bus company 1 offers and q2 is the number of bus journeys that bus company 2 offers. Assume that both bus companies compete with each other in the quantities they offer and determine the equilibrium price of bus journeys in Belgium

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