(2) The market demand is given by P = 120-2Q. There are only two firms producing this good. Hence the quantity supplied

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2 The Market Demand Is Given By P 120 2q There Are Only Two Firms Producing This Good Hence The Quantity Supplied 1 (44.19 KiB) Viewed 26 times

(2) The market demand is given by P = 120-2Q. There are only two firms producing this good. Hence the quantity supplied in the market is the sum of each firm's quantity supplied (that is, Q = 9A + 9B), where q, is the firm j's quantity supplied). Firm A has zero marginal cost, while Firm B has the marginal cost of $20. Each firm has no fixed cost, and simultaneously chooses how many units to produce. (a) What is Firm A's profit function if Firm A takes the quantity chosen by Firm B, qв, as given? (b) Find the equilibrium quantities produced by each Firm (9A, 93).