Question
Two firm in a market that has the inverse demand function P=240-6Q. Firm 1 cost function is C(Q)=3Q, and firm2 cost function s C(Q)=4Q. Assuming
- Two firm in a market that has the inverse demand function P=240-6Q. Firm 1 cost function is C(Q)=3Q, and firm2 cost function s C(Q)=4Q. Assuming a Cournot equilibrium, Determine the following
A) Output of firm 1
B) Output of firm 2
C) Graph the reactions function to scale and identify each and the horizontal and vertical intercepts.
E) Market price of the product
F) Profits of firm 1
G) Profits of firm 2
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
