Firm 1 and Firm 2 are the only two firms in a market where price is determined by the inverse demand function: P = 224 -
Posted: Sun Jul 03, 2022 6:57 am
Firm 1 and Firm 2 are the only two firms in a market where priceis determined by the inverse demand function: P = 224 - Q.
Q is the sum of Firm 1 and Firm 2's output, so Q =q1 + q2
Firm 1's total cost function is given byTC1(q1) = 6q1
Firm 2's total cost function is given byTC2(q2) = 9q2
If these firms Cournot compete (simultaneously settingquantities), what will market output be when both firms aremaximizing profits in equilibrium?
(Note: The answer may not be a whole number, so round to thenearest hundredth)
(Note: The numbers may change between questions, so readcarefully
Q is the sum of Firm 1 and Firm 2's output, so Q =q1 + q2
Firm 1's total cost function is given byTC1(q1) = 6q1
Firm 2's total cost function is given byTC2(q2) = 9q2
If these firms Cournot compete (simultaneously settingquantities), what will market output be when both firms aremaximizing profits in equilibrium?
(Note: The answer may not be a whole number, so round to thenearest hundredth)
(Note: The numbers may change between questions, so readcarefully