Fi arginal cost is MC² = $40 Calculate the output of each firm, market output, and price if there is (a) a cc (b) a Cournot equilibrium %3D ne collusive equilibrium occurs where q, equals and q, equals (Enter numeric responses usir unded to two decimal places) arket output is ne collusive equilibrium price is S ne Cournot-Nash equilibrium occurs where q, equals and q, equals arket output is
Fi arginal cost is MC² = $40 Calculate the output of each firm, market output, and price if there is (a) a cc (b) a Cournot equilibrium %3D ne collusive equilibrium occurs where q, equals and q, equals (Enter numeric responses usir unded to two decimal places) arket output is ne collusive equilibrium price is S ne Cournot-Nash equilibrium occurs where q, equals and q, equals arket output is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A duopoly faces a market demand of p= 120 -Q Firm 1 has a constant marginal cost of Mc' = $20. Firm 2's constant
marginal cost is MC² = $40 Calculate the output of each firm, market output, and price if there is (a) a collusive equilibrium
or (b) a Cournot equilibrium
The collusive equilibrium occurs where q, equals and q2 equals
(Enter numeric responses using real numbers
rounded to two decimal places)
Market output is
The collusive equilibrium price is S
The Cournot-Nash equilibrium occurs where q, equals and q, equals
Market output is
Furthermore, the equilibrium occurs at a price of $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb95dca-d87b-4b5d-b0ee-92de4e7acdde%2F3de6a464-09b7-4bfa-a6ac-1764c5860631%2F3ate669_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A duopoly faces a market demand of p= 120 -Q Firm 1 has a constant marginal cost of Mc' = $20. Firm 2's constant
marginal cost is MC² = $40 Calculate the output of each firm, market output, and price if there is (a) a collusive equilibrium
or (b) a Cournot equilibrium
The collusive equilibrium occurs where q, equals and q2 equals
(Enter numeric responses using real numbers
rounded to two decimal places)
Market output is
The collusive equilibrium price is S
The Cournot-Nash equilibrium occurs where q, equals and q, equals
Market output is
Furthermore, the equilibrium occurs at a price of $
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