If each firm acts to maximize its profits, taking its rival’s output as given (i.e., the firmsbehave as Cournot oligopolists), what will be the equilibrium quantities selected by each firm?What is the total output, and what is the market price? What are the profits for each firm? Two firms, A and B, compete as duopolists in an industry. The firms produce homogeneous goods.Each firm has a marginal cost function given by:TC(q) = 30q; + 1.5q;²The (inverse) market demand for the product can be written as:P = 300-3Qwhere total output, Q = q₁+9B ·

Cournot oligopolists refers to a model of an oligopolistic market structure in economics. The market…

Answered: Two firms, A and B, compete as…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If each firm acts to maximize its profits, taking its rival’s output as given (i.e., the firms
behave as Cournot oligopolists), what will be the equilibrium quantities selected by each firm?
What is the total output, and what is the market price? What are the profits for each firm?

Two firms, A and B, compete as duopolists in an industry. The firms produce homogeneous goods.
Each firm has a marginal cost function given by:
TC(q) = 30q; + 1.5q;²
The (inverse) market demand for the product can be written as:
P = 300-3Q
where total output, Q = q₁+9B ·

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