Two firms A and B are competing in a Cournot Duopoly. Thereaction function of firm a is given by Qa= 45- 1/2 Qb and thereaction of firm B is given by Qb = 30-1/2Qa, where Qa & Qbrepresent the quantity of output produced by firm a and firm brespectively.
Two Firms A And B Are Competing In A Cournot Duopoly The Reaction Function Of Firm A Is Given By Qa 45 1 2 Qb And The 1 (34.63 KiB) Viewed 10 times
4.c Determine the revenue generated by each firm in the cournotequilibrium.
1. If firm A decides to produce 50 units, how many units will firm B produce? 2. If firm B decides to produce 40 units, how many units will firm A produce? 3. What quantity of output does ach firm produce in the Cournot equilibrium? 4. Suppose the market inverse demand is P = 150- 4.a Determine the price charged in this market in the Cournot equilibrium. 4.b Determine the revenue generated by each firm in the Cournot equilibrium.
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