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The market for bananas in OZLand is an oligopoly with two profit-maximising suppliers - Bongo Bananas and Bendy Bananas. These suppliers compete strategically by choosing
The market for bananas in OZLand is an oligopoly with two profit-maximising suppliers - Bongo Bananas and Bendy Bananas. These suppliers compete strategically by choosing a quantity of bananas to supply to the market. Each supplier is able to choose either 50 mega-tonnes or 100 mega-tonnes of bananas. Market demand for bananas in OZLand is represented by the following schedule: Quantity Price ($ per (mega- mega-tonne) tonnes 100 100 150 75 200 50 For each supplier the MC of producing a mega-tonne of bananas is constant and equal to $40 per mega-tonne, and there are zero fixed costs. Consider only pure strategy equilibria for this
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