- Problem 3 Cour Not Oligopoly 12 Pts Consider A Coumot Oligopoly In Which The Market Demand Curve Is Q 60 P Ther 1 (15.84 KiB) Viewed 33 times
- Problem 3 Cour Not Oligopoly 12 Pts Consider A Coumot Oligopoly In Which The Market Demand Curve Is Q 60 P Ther 2 (4.13 KiB) Viewed 33 times
- Problem 3 Cour Not Oligopoly 12 Pts Consider A Coumot Oligopoly In Which The Market Demand Curve Is Q 60 P Ther 3 (4.22 KiB) Viewed 33 times
Problem #3: Cour not oligopoly (12 pts) Consider a Coumot oligopoly in which the market demand curve is Q = 60 - P. There are 2 firms in this oligopoly, so this means Q = 41+q2. The firms in this market are not identical: Firm I's cost function is ci(qi) = 2q1-, while Firm 2's cost function is cz(22) = 3302. a) Write down a profit function for each firm.
b) Using your answer to a), find a best-response function for each firm.
c) Using your answer to b), solve for the Nash equilibrium in this market.