Question
Suppose there are two firms in the market for online conference call software. The firms produce identical products. The market demand for the software is
Suppose there are two firms in the market for online conference call software. The firms produce identical products. The market demand for the software is given by Qd=60-0.5P The firms have identical cost functions, given by TC = q^2.
a) Suppose the two firms compete with each other in Bertrand fashion. What will be the prevailing market price and quantity in this market?
b) Suppose now that the two firms compete with each other in Cournot fashion. What will be the prevailing market price and quantity in this market?
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Crashed How A Decade Of Financial Crises Changed The World
Authors: Adam Tooze
1st Edition
0143110357, 9780143110354
