Analysts have estimated the inverse market demand in a homogeneous-product Cournot duopoly to be P= 150 -3 (Q₁ + Q2). They estimate costs to be C₁(Q₁)=18Q₁ and C₂(Q2) = 30Q2. a. Determine the reaction function for each firm. Firm 1: Q₁=[ Firm 2: Q2 = Q2 Firm 2: Q1 b. Calculate each firm's equilibrium output. Firm 1:[ . Calculate the equilibrium market price. $ d. Calculate the profit each firm earns in equilibrium. Firm 1: $ Firm 2: $

Analysts have estimated the inverse market demand in a homogeneous-product Cournot duopoly to be P= 150 -3 (Q₁ + Q2). They estimate costs to be C₁(Q₁)=18Q₁ and C₂(Q2) = 30Q2. a. Determine the reaction function for each firm. Firm 1: Q₁=[ Firm 2: Q2 = Q2 Firm 2: Q1 b. Calculate each firm's equilibrium output. Firm 1:[ . Calculate the equilibrium market price. $ d. Calculate the profit each firm earns in equilibrium. Firm 1: $ Firm 2: $

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 17SQ

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