cost of Country 1 is C1 = $2 and of country 2 it is %3D C2 = $4. The total demand for oil is Q = 40-p where p is the market price of a unit of oil. Each country can only produce either 5 units, 10 units 15 units. The total production of the two countrie

cost of Country 1 is C1 = $2 and of country 2 it is %3D C2 = $4. The total demand for oil is Q = 40-p where p is the market price of a unit of oil. Each country can only produce either 5 units, 10 units 15 units. The total production of the two countrie

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Two countries produce oil. The per unit production
cost of Country 1 is C1 = $2 and of country 2 it is
C2 = $4. The total demand for oil is Q = 40-p
where p is the market price of a unit of oil. Each
country can only produce either 5 units, 10 units or
15 units. The total production of the two countries
in a Nash equilibrium is
10
15
20
25
30

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