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The chart below contains the necessary information for a Cournot duopoly wit identical product. You have the market demand, Qd = 60 - 0.5P and
The chart below contains the necessary information for a Cournot duopoly wit identical product. You have the market demand, Qd = 60 - 0.5P and each firm the same marginal cost; MC1=MC2=30. There are columns available for the m price, producer surplus for each firm and the total producer surplus for the firm together. 1. Complete the table. Use the example in the lecture as a model. 2. What is the competitive outcome for this market? 3. What is the cooperative outcome for this market? 4. Is the cooperative outcome for this market stable? Explain. Q1 Q2 P PS1 PS2 PStot 9 9 10 9 10 10 11 10 11 11 12 11 12 12 13 12 13 13 14 13 14 14 15 14 15 15 16 15 16 16
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