Question
Suppose the inverse demand function for two Cournot duopolists is given by P = 10 - (Q 1 + Q 2 ) and their costs
Suppose the inverse demand function for two Cournot duopolists is given by P = 10 - (Q1 + Q2) and their costs are zero.
A.What is each firm's marginal revenue and reaction functions?
B.Determine the Cournot equilibrium outputs and equilibrium price.What is the implication of this model?
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
