Question
The reverse demand function of some products are given as follows. The suppliers of this product are Company A and Company B, and the cost
The reverse demand function of some products are given as follows.
The suppliers of this product are Company A and Company B, and the cost functions of each company are different with CA(q)=5q and CB(q)=10q
(a) Let's say two companies compete for Cournot quantity. What is the Kurno Nash equilibrium at this time? Also, what is the profit each company gets from the equilibrium? (b) Let's say two companies compete for Bertrand prices. Graph the best response function of each company and indicate the Nash equilibrium.
I'm going to give you a big thumbs-up for answering these two questions. Many but thank you very much
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