Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 530 - 17 Qb.The marginal cost for firm 1 is given by mc1 = 12 Q.The marginal cost for firm 2 is given by mc2 = 9 Q. (Assume firm 1 has a fixed cost of $ 157 and firm 2 has a fixed cost of $ 113 .) What is level of total surplus in the duopoly equilibrium ? Answer: 5843.43

Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 530 - 17 Qb.The marginal cost for firm 1 is given by mc1 = 12 Q.The marginal cost for firm 2 is given by mc2 = 9 Q. (Assume firm 1 has a fixed cost of $ 157 and firm 2 has a fixed cost of $ 113 .) What is level of total surplus in the duopoly equilibrium ? Answer: 5843.43

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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