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want proper computer based answer 2. Consider an industry with two firms. Each firm is identical, produces a homogenous product, and are profit maximizers. The
want proper computer based answer
2. Consider an industry with two firms. Each firm is identical, produces a homogenous product, and are profit maximizers. The total cost of production, the marginal cost of production, and the industry demand is known to both firms as listed below: o Inverse Demand Function: P = 100 - 20 o Total Cost Function: C(91) = 1091 and C(92) = 592 o Marginal Cost Function: MC(91) = 3 and MC(92) = 2 a. Determine the Cournot equilibrium quantity for both firms, the market price, and their individual firm profits. b. Determine the Betrand equilibrium quantity for both firms, the market price, and their individual firm profits. C. Determine the Stackelberg equilibrium quantity for both firms, the market price, and their individual firm profits Step by Step Solution
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