A duopoly faces an inverse market demand of: p= 390 - 34, - 302. You are told that firm 1 is the leader and firm 2 is the follower. Otherwise the firms are identical, each with a constant marginal cost of $90. What oligopoly model will you use to analyze this market? The Stackelberg model At the Nash equilibrium, firm 1 will produce 60.0 units. (Round your answer to one decimal place.) At the Nash equilibrium, firm 2 will produce 30.0 units. (Round your answer to one decimal place.)
A duopoly faces an inverse market demand of: p= 390 - 34, - 302. You are told that firm 1 is the leader and firm 2 is the follower. Otherwise the firms are identical, each with a constant marginal cost of $90. What oligopoly model will you use to analyze this market? The Stackelberg model At the Nash equilibrium, firm 1 will produce 60.0 units. (Round your answer to one decimal place.) At the Nash equilibrium, firm 2 will produce 30.0 units. (Round your answer to one decimal place.)
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.5P
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Transcribed Image Text:A duopoly faces an inverse market demand of:
p= 390 - 341 - 392.
You are told that firm 1 is the leader and firm 2 is the follower. Otherwise the firms are identical, each with a constant marginal cost of $90.
What oligopoly model will you use to analyze this market? The Stackelberg model
At the Nash equilibrium, firm 1 will produce 60.0 units. (Round your answer to one decimal place.)
At the Nash equilibrium, firm 2 will produce 30.0 units. (Round your answer to one decimal place.)
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