An industry contains two firms and the inverse demand function for the firms output is P-180-30, where is the total oups ose that firm I's cost and marginal cost functions are C(q)- 30q; and MC(q)-30, while firm 2's cost and marginal cost functions -q² and MC(q)-2q2 Determine each firm's Nash equilibrium output. Determine each firm's profit at the Nash equilibrium output.

An industry contains two firms and the inverse demand function for the firms output is P-180-30, where is the total oups ose that firm I's cost and marginal cost functions are C(q)- 30q; and MC(q)-30, while firm 2's cost and marginal cost functions -q² and MC(q)-2q2 Determine each firm's Nash equilibrium output. Determine each firm's profit at the Nash equilibrium output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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