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The market for gingerbread is described by the market demand function X(p) = 1500 p. Firm A produces y units of gingerbread at a cost
The market for gingerbread is described by the market demand function X(p) = 1500 p. Firm A produces y units of gingerbread at a cost c_A(y) = y^2. Now suppose firm B enters the market also producing y units of gingerbread at cost c_B(y) = y^2. Derive the Cournot equilibrium price
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
