Find the equilibrium price, quantities, and profits for each of these duopolists. A firm called a produces output Q using labor and capital according to the production functionQ = f(K, L) = 3L + 6KThe input prices of labor and capital are fixed and equal to w = 4 and r = 6, respectively. suppose that in this market, our firm a competes with one otheridentical firm, B, and that both firms set their quantities at the same time. Furthermore,inverse demand for Q is given by P = 13 – Q. Regardless of what you found in part (c), youshould now assume that both firms produce at a constant marginal cost of 1.

We are going to solve for the profit maximisation of duopolists.

Answered: Find the equilibrium price, quantities,…

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Find the equilibrium price, quantities, and profits for each of these duopolists.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.7P

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