c. Calculate the Nash equilibrium prices for Bertrand duopolists, which choose prices for their identical prod- ucts simultaneously. Also compute firm and market out- put as well as firm and industry profits. d. Suppose now that there are n identical firms in a Cournot model. Compute the Nash equilibrium quanti- ties as functions of n. Also compute market output, mar- ket price, and firm and industry profits.
c. Calculate the Nash equilibrium prices for Bertrand duopolists, which choose prices for their identical prod- ucts simultaneously. Also compute firm and market out- put as well as firm and industry profits. d. Suppose now that there are n identical firms in a Cournot model. Compute the Nash equilibrium quanti- ties as functions of n. Also compute market output, mar- ket price, and firm and industry profits.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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