Question 3 Consider two firms competing under Cournot Quantity competition and faces a demand function of, Q = 120-P Fir

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Question 3 Consider two firms competing under Cournot Quantity competition and faces a demand function of, Q = 120-P Fir

Post by answerhappygod »

Question 3 Consider Two Firms Competing Under Cournot Quantity Competition And Faces A Demand Function Of Q 120 P Fir 1
Question 3 Consider Two Firms Competing Under Cournot Quantity Competition And Faces A Demand Function Of Q 120 P Fir 1 (53.61 KiB) Viewed 29 times
Question 3 Consider two firms competing under Cournot Quantity competition and faces a demand function of, Q = 120-P Firm 1 has a constant marginal cost of MC1 = 20. Firm 2 has a constant marginal cost of MC2 = 30. a) What are the best response functions of the two firms? b) Calculate the output of each firm, market output, and price for a Cournot Nash equilibrium. (Partial output is possible. i.e., 2.25 or 3.67 units of output is possible.) Illustrate the best response functions on a graph. 112
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”