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Question 3 Consider two firms competing under Cournot Quantity competition and faces a demand function of, Q = 120-P Fir
Posted: Tue Apr 12, 2022 10:02 am
by answerhappygod
- Question 3 Consider Two Firms Competing Under Cournot Quantity Competition And Faces A Demand Function Of Q 120 P Fir 1 (53.61 KiB) Viewed 30 times
Question 3 Consider two firms competing under Cournot Quantity competition and faces a demand function of, Q = 120-P Firm 1 has a constant marginal cost of MC1 = 20. Firm 2 has a constant marginal cost of MC2 = 30. a) What are the best response functions of the two firms? b) Calculate the output of each firm, market output, and price for a Cournot Nash equilibrium. (Partial output is possible. i.e., 2.25 or 3.67 units of output is possible.) Illustrate the best response functions on a graph. 112