Say firm 1 has total cost TC1 = Q1 + Q1^2, where Q1 is the Q for firm one, and similarly for firm 2 TC2 = 4Q2 + 0.5Q2^2. In each scenario below show your work and say what is total Q in market market price the Q of each firm and

Say firm 1 has total cost TC1 = Q1 + Q1^2, where Q1 is the Q for firm one, and similarly for firm 2 TC2 = 4Q2 + 0.5Q2^2. In each scenario below show your work and say what is total Q in market market price the Q of each firm and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Say the market demand coming from consumers is
P = 40 - Q.
Say firm 1 has total cost TC1 = Q1+ Q1^2, where Q1
is the Q for firm one,
and similarly for firm 2 TC2 = 4Q2 + 0.5Q2^2.
In each scenario below show your work and say
what is
total Q in market
market price
the Q of each firm and
the profit of each firm:
The scenarios are
the firms compete as if in perfect competition
the firms form a cartel
the firms act as Cournot Duopolists.

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