to be: Consider a duopoly in which the two firms produce differentiated products and the inverse demand for each firm is estimated Firm 1: p₁ (91-92) = 3805-9₁ -0.592 Firm 2: P2 (92,91) =2570-92 -0.59₁. Firm 1 has constant marginal costs of $15 per unit while Firm 2 has constant marginal costs of $30 per unit. Fixed costs are negligble for both firms. Solve for the Nash-Stackelberg equilibrium, assuming Firm 1 is the Stackelberg leader. 9₁ = 1802.86 units. (Enter your answer rounded to two decimal places.) 92= 819.29 units. (Enter your answer rounded to two decimal places.)

to be: Consider a duopoly in which the two firms produce differentiated products and the inverse demand for each firm is estimated Firm 1: p₁ (91-92) = 3805-9₁ -0.592 Firm 2: P2 (92,91) =2570-92 -0.59₁. Firm 1 has constant marginal costs of $15 per unit while Firm 2 has constant marginal costs of $30 per unit. Fixed costs are negligble for both firms. Solve for the Nash-Stackelberg equilibrium, assuming Firm 1 is the Stackelberg leader. 9₁ = 1802.86 units. (Enter your answer rounded to two decimal places.) 92= 819.29 units. (Enter your answer rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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