Suppose a market is served by two rms {a duopoly). The market demand function given by P = 1200 Q1 Q: Twhere Q1 is the
Suppose a market is served by two rms {a duopoly). The market demand function given by P = 1200 Q1 Q: Twhere Q1 is the output produced by lm 1 and Q: is the output produced by rm 2. Firm ['3 coat of production is given by the function C(Q1}= 1201121 and rm 2's cost of production is given by the function C(Qz) = 120Q1. The average cost of rm 1 is given by AC1 = 120 and the average coat of rm 2 is given by AC: = 120. Marginal prot function for rm 1: % = 1080 2Q] 02 '31. NIarginal prot metion for rm 2: % = 1080 Ql 292 '32:. What will be the Equilibrium market price in the Comet model? {A} 4213+ (B) 434:} (C) 4612) (D) 542m
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance