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Question: The demand of two firms are given below: Q₁ = a-8P₁+4P₂ Q₂ = a - 8P₂ +4P₁ a) Assume some values less than 100
Posted: Wed Jul 06, 2022 5:59 am
by answerhappygod
- Question The Demand Of Two Firms Are Given Below Q A 8p 4p Q A 8p 4p A Assume Some Values Less Than 100 1 (30.28 KiB) Viewed 11 times
Question: The demand of two firms are given below: Q₁ = a-8P₁+4P₂ Q₂ = a - 8P₂ +4P₁ a) Assume some values less than 100 for a. Likewise, assume some values less than 10 for MC and find the profit-maximizing values of each firm's prices, output, and profit. b) Furthermore, fill the following cell by calculating the profit of each firm in the above equation. Are the outcomes like a prisoner dilemma game? Firm 2-Collude Firm 2-Compete Firm 1-Collude Profit 1, Profit 2 Profit 1, Profit 2 Firm 1-Compete Profit 1, Profit 2 Profit 1, Profit 2