and for Firm 2 is P₂ = 100-92-0.5q₁. marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities. ilibrium quantities are Onses rounded to two decimal places.) 91 = 92 units units.
and for Firm 2 is P₂ = 100-92-0.5q₁. marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities. ilibrium quantities are Onses rounded to two decimal places.) 91 = 92 units units.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is
The inverse demand for Firm 2 is
and
P₁ = 52-9₁-0.592.
Each firm has a marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities.
The Cournot equilibrium quantities are
(Enter your responses rounded to two decimal places.)
P₂ = 100-92-0.5q1₁.
91 =
units
92 units.
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad942d81-d900-47bd-b390-ed511be993df%2Fd444583e-a650-471b-b57b-709a31b71b34%2Fqyjcwk_processed.png&w=3840&q=75)
Transcribed Image Text:The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is
The inverse demand for Firm 2 is
and
P₁ = 52-9₁-0.592.
Each firm has a marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities.
The Cournot equilibrium quantities are
(Enter your responses rounded to two decimal places.)
P₂ = 100-92-0.5q1₁.
91 =
units
92 units.
=
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