Consider the Cournot duopoly model. Suppose the inverse demand is given by P(Q) = 200 - Q where Q q1 +q2, and production has no costs. %3D What are the payoffs for each firm? O 200 – q1 and 200 - q2 O (200 – q1-q2)q1- and (200- q1-92)92-92 O 200 – q1 - q2 and 200- q1- 92 O (200 - q1-92)q1 and (200- q- 92)q2 O (200 – q1)qı and (200- q2)q2
Consider the Cournot duopoly model. Suppose the inverse demand is given by P(Q) = 200 - Q where Q q1 +q2, and production has no costs. %3D What are the payoffs for each firm? O 200 – q1 and 200 - q2 O (200 – q1-q2)q1- and (200- q1-92)92-92 O 200 – q1 - q2 and 200- q1- 92 O (200 - q1-92)q1 and (200- q- 92)q2 O (200 – q1)qı and (200- q2)q2
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter12: Price And Output Determination: Oligopoly
Section: Chapter Questions
Problem 1E
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Question
![Consider the Cournot duopoly model. Suppose the inverse demand is given by P(Q) =
200 - Q where Q = q1 + q2, and production has no costs.
%3!
What are the payoffs for each firm?
O 200 – q1 and 200 - q2
O (200 – q1 - q2)qı - 91 and (200- q1-92)92- 92
200 – q1 – q2 and 200 – q1 - 92
O (200 – q1 - q2)q1 and (200 - q1- 92)q2
O (200 – q1)qı and (200- q2)q2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F478c8595-7795-4a46-af76-ab0980cbd68e%2Fe431b1f7-bf4f-46d5-a8c4-c007f42ff549%2Frqdhmse_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the Cournot duopoly model. Suppose the inverse demand is given by P(Q) =
200 - Q where Q = q1 + q2, and production has no costs.
%3!
What are the payoffs for each firm?
O 200 – q1 and 200 - q2
O (200 – q1 - q2)qı - 91 and (200- q1-92)92- 92
200 – q1 – q2 and 200 – q1 - 92
O (200 – q1 - q2)q1 and (200 - q1- 92)q2
O (200 – q1)qı and (200- q2)q2
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