6. Suppose that identical duopoly firms have constant marginal costs of $10 per unit.Firm 1 faces a demand function of q1 =100– 2p1+p2, where q1 is Firm l's output, pi is Firml's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is q2 = 100– 2p2+P1.Solve for the NE.

Under these presumptions, it very well may be shown that the Bertrand (Nash) equilibrium is that…

Firm 1 faces a demand function of q1 = 100– 2p1+p2, where q is Firm l's output, Pi is Firm %3D l's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is q2 = 100 – 2p2+P1. Solve for the NE.

Firm 1 faces a demand function of q1 = 100– 2p1+p2, where q is Firm l's output, Pi is Firm %3D l's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is q2 = 100 – 2p2+P1. Solve for the NE.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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