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Suppose there are two producers of a specialized microphone in Ontario. In 2019, total production was 25,000 units and price was $50 per unit. Marginal
Suppose there are two producers of a specialized microphone in Ontario. In 2019, total production was 25,000 units and price was $50 per unit. Marginal cost is constant at the level of $20 per unit for firm 1 and $30 per unit for firm 2. Finally, suppose that firms compete according to the Cournot model.
A) assuming that the demand is linear, determine the coefficients of the inverse demand curve that are consistent with the observed data
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