Part 1 ( Feedback See Hint Two Cournot duopolists compete in a market with inverse demand given by p = 92.00 - 20, where p is the per-unit price, q; is the output for firm i (either firm 1 or firm 2), and Q = 91 + 92. Both firms face constant marginal costs of $2 per unit. Assume no fixed costs. What is the optimal output for firm 1? 15.33 (Round to two decimals if necessary.) What is the optimal output for firm 2? 15.34 (Round to two decimals if necessary.) Part 214 × Feedback What is the equilibrium price in this market? $ 61.34 (Round to two decimals if necessary.) Part 3 * Feedback What is the profit for each firm? (Round to two decimals if necessary.) Firm 1 profit: $940.19 Firm 2 profit: $ 940.96 (Round to two decimals if necessary.) See Hint See Hint

Part 1 ( Feedback See Hint Two Cournot duopolists compete in a market with inverse demand given by p = 92.00 - 20, where p is the per-unit price, q; is the output for firm i (either firm 1 or firm 2), and Q = 91 + 92. Both firms face constant marginal costs of $2 per unit. Assume no fixed costs. What is the optimal output for firm 1? 15.33 (Round to two decimals if necessary.) What is the optimal output for firm 2? 15.34 (Round to two decimals if necessary.) Part 214 × Feedback What is the equilibrium price in this market? $ 61.34 (Round to two decimals if necessary.) Part 3 * Feedback What is the profit for each firm? (Round to two decimals if necessary.) Firm 1 profit: $940.19 Firm 2 profit: $ 940.96 (Round to two decimals if necessary.) See Hint See Hint

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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