Suppose that the Bob Buttons Company (BBC) enters the market. BBC has the same cost function of c=3q+1. Let denote q1 the quantity sold by ABC and denote the q2 quantity sold by BBC.Now suppose that ABC and BBC reach a Cournot equilibrium.Q: What would be the net change in ABC’s profit as a result of BBC’s entry into the market?____ (type in a negative number if ABC’s profit decreases)(please see the attachement for partial of my work, not sure if it's correct, thank you!) The Alice Buttons Company (ABC) operates as a monopoly in a market withinverse demand p = 120 — q. Its cost function is c = 3q +1 SI18=64-021 )182-11 =2% <= 26-Lil =ibe187-5.85 -7%дів чале в чу хом авев сость - гвг-II zootI-bib =b -roliПідбоеві 0=16 wayn63-5.85=%ев палів 11 хот 07точ(1+6²x4) - bε*18=120718є—ве та35.85 = 25.1br-Lil =187 -5.85167-5-85-16чЉ3-fi85 =%наве -гыз -ть -rbarlневе ты тв- в-ого) =(нова) - твоd sen0=26-162-LIIIrbib -18-18 li1+64=0 аканьель в-в-точ1-134-¹b (²3-¹2-021) =oot=гв-13-021 =6-021 =d(над-'b.d=12²6+b=1S

Given; Firm ABC:- Cost function; c=3q+1 Demand Function; p=120-q

Answered: Suppose that the Bob Buttons Company…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the Bob Buttons Company (BBC) enters the market. BBC has the same cost function of c=3q+1. Let denote q1 the quantity sold by ABC and denote the q2 quantity sold by BBC.

Now suppose that ABC and BBC reach a Cournot equilibrium.

Q: What would be the net change in ABC’s profit as a result of BBC’s entry into the market?____ (type in a negative number if ABC’s profit decreases)

(please see the attachement for partial of my work, not sure if it's correct, thank you!)

The Alice Buttons Company (ABC) operates as a monopoly in a market with
inverse demand p = 120 — q. Its cost function is c = 3q +1

SI
18=64-021 )
182-11 =2% <= 26-Lil =ibe
187-5.85 -7%
дів чале в чу хом авев сость - гвг-II zoot
I-bib =b -roli
Підбоеві 0=16 wayn
63-5.85=%
ев палів 11 хот 07
точ
(1+6²x4) - bε*18=12
0718є
—
ве та
3
5.85 = 25.1
br-Lil =187 -5.85
167-5-85-16
чЉ3-fi85 =%
наве -гыз -ть -rbarl
неве ты тв- в-ого) =
(нова) - твоd sen
0=26-162-LII
Irbib -18-18 li
1+64=0 ака
ньель в-в-точ
1-134-¹b (²3-¹2-021) =
oot
=
гв-13-021 =
6-021 =d
(над-'b.d=12
²6+b=1
S

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