Question
Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3 Q. Each firm produces at
Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior.
Instruction: Do not round intermediate calculations. Round final answers to two decimal places for Cournot values.
Cournot output for each firm: ______
Cournot profits for each firm: $______
Stackelberg leader output:______
Stackelberg follower output: ______
Stackelberg leader profits: $______
Stackelberg follower profits: $______
Bertrand market-level output:______
Bertrand profits for each firm: $______
Collusive market-level output:______
Collusive industry-level profits: $______
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