8. The demand that duopoly quantity-setting firms face is p = 90 – 241 – 2q2. Firm 1 has no marginal cost of production, but Firm 2 has a marginal cost of $30. How much does each firm produce if they move simultaneously? What is the equilibrium price?

8. The demand that duopoly quantity-setting firms face is p = 90 – 241 – 2q2. Firm 1 has no marginal cost of production, but Firm 2 has a marginal cost of $30. How much does each firm produce if they move simultaneously? What is the equilibrium price?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8. The demand that duopoly quantity-setting firms face is p = 90 – 241 – 2q2. Firm
1 has no marginal cost of production, but Firm 2 has a marginal cost of $30. How much
does each firm produce if they move simultaneously? What is the equilibrium price?

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