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Home / Questions / Two Cournot duopolists compete in a market with inverse demand given by ๐‘=38.00โˆ’2๐‘„, wher...

Two Cournot duopolists compete in a market with inverse demand given by ๐‘=38.00โˆ’2๐‘„, where ๐‘ is the per-unit price, ๐‘ž๐‘– is the output for firm ๐‘– (either firm 1 or firm 2), and ๐‘„=๐‘ž1+๐‘ž2 firm

Two Cournot duopolists compete in a market with inverse demand given by ๐‘=38.00โˆ’2๐‘„, where ๐‘ is the per-unit price, ๐‘ž๐‘– is the output for firm ๐‘– (either firm 1 or firm 2), and ๐‘„=๐‘ž1+๐‘ž2 firm 1 face constant marginal costs of $5 per unit and firm 2 faces $2. Assume no fixed costs.

What is the optimal output for firm 1? (Round to two decimals if necessary.)

What is the optimal output for firm 2? (Round to two decimals if necessary.)

Part 2 (1 point)

What is the equilibrium price in this market? $ (Round to two decimals if necessary.)

Part 3

(2 points) What is the profit for each firm?

Firm 1 profit: $ (Round to two decimals if necessary.)

Firm 2 profit: $ (Round to two decimals if necessary.)

Jun 09 2021 View more View Less

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