In an industry with two firms, their best responses are ? ∗ 1 = 10 ― (1/6)?2 and ? ∗ 2 = 8 ― (1/6)?1. What is the total quantity exchanged on the market? - In an industry with two firms, their best responses are Q₁=10-1₂ and Q₂1= 8-2₁. What is the total quantity exchanged on the market?

Since the industry has two firms so this is the case of the Cournot duopoly model in which each firm…

Answered: In an industry with two firms, their…

In an industry with two firms, their best responses are Q₁ = 10 — Q₂ and Q2 1 = 8-Q₁. What is the total quantity exchanged on the market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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