There are two firms in a market and they compete in a Nash-Cournot manner. Firm 1 faces the demand function p1(q1,92) = - 91 - 92, and has a total cost function TC1 = (91)2. Firm 2 faces the demand function p2(91,92) = 160 - 92 - 91, and has at cost function TC2 = (92)2. Answer each of the following questions. a. Find the Nash-Cournot equilibrim output v and price v for firm 1. b. Find the Nash-Cournot equilibrim output v and price v for firm 2.
There are two firms in a market and they compete in a Nash-Cournot manner. Firm 1 faces the demand function p1(q1,92) = - 91 - 92, and has a total cost function TC1 = (91)2. Firm 2 faces the demand function p2(91,92) = 160 - 92 - 91, and has at cost function TC2 = (92)2. Answer each of the following questions. a. Find the Nash-Cournot equilibrim output v and price v for firm 1. b. Find the Nash-Cournot equilibrim output v and price v for firm 2.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![There are two firms in a market and they compete in a Nash-Cournot manner. Firm 1 faces the demand function p1(g1,92) = 200
- 91 - 92, and has a total cost function TC1 = (91)2. Firm 2 faces the demand function p2(91,92) = 160 - 92 - 91, and has a total
%3D
cost function TC2 = (92)2. Answer each of the following questions.
a. Find the Nash-Cournot equilibrim output
and price
v for firm 1.
b. Find the Nash-Cournot equilibrim output
v and price
v for firm 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07116f18-936d-4591-9592-b940c7a3d415%2Fb068bd84-a392-4f05-a0aa-b13bd81ae49e%2Fw2nmdya_processed.jpeg&w=3840&q=75)
Transcribed Image Text:There are two firms in a market and they compete in a Nash-Cournot manner. Firm 1 faces the demand function p1(g1,92) = 200
- 91 - 92, and has a total cost function TC1 = (91)2. Firm 2 faces the demand function p2(91,92) = 160 - 92 - 91, and has a total
%3D
cost function TC2 = (92)2. Answer each of the following questions.
a. Find the Nash-Cournot equilibrim output
and price
v for firm 1.
b. Find the Nash-Cournot equilibrim output
v and price
v for firm 2.
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