12.3. Return to the example used in the text for the Cournot model, where demand was equal to Q = 120 – P. Suppose that instead of costless production, marginal and average costs are constant at МС — АС 30. %3D Compute the Nash equilibrium quantities, prices, and profits.

12.3. Return to the example used in the text for the Cournot model, where demand was equal to Q = 120 – P. Suppose that instead of costless production, marginal and average costs are constant at МС — АС 30. %3D Compute the Nash equilibrium quantities, prices, and profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

12.3. Return to the example used in the text for the Cournot
model, where demand was equal to
ar
Q3D 120 — Р.
а.
Suppose that instead of costless production, marginal
and average costs are constant at
МС — АС — 30.
Compute the Nash equilibrium quantities, prices, and
profits.

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