Question
Two farmers sell oranges at a farmers market. (They are the only sellers of oranges at that market.) The farmers each decide how many oranges
Two farmers sell oranges at a farmers market. (They are the only sellers of oranges at that market.) The farmers each decide how many oranges to bring and then the price they can sell their oranges for is determined by the market demand curve: Q=10025Pwhere Qis the total number of oranges bought from both farmers and P is the price of an orange. FarmerA's costs go up by $2 for each extra orange he brings to the farmers market. FarmerB's costs go up by $1 for every extra orange she brings to the farmers market.
In equilibrium, how many oranges will Farmer A sell and how many for farmer B?
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