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Two firms competing in a duopoly produce differentiated products and the inverse demand for each firm is estimated to be: Firm 1: p₁ = 6340-91 -0.592 Firm 2: p₂ = 4260-92 -0.591. Firm 1 has cost function of C (91) = 5q₁ while Firm 2 has a cost function of C C (9₂) Solve for the Nash-Cournot equilibrium. 9₁2813.33 units. (Enter your answer rounded to two decimal places.) 1416.67 units. (Enter your answer rounded to two decimal places.) 92 = 2092.

Two firms competing in a duopoly produce differentiated products and the inverse demand for each firm is estimated to be: Firm 1: p₁ = 6340-91 -0.592 Firm 2: p₂ = 4260-92 -0.591. Firm 1 has cost function of C (91) = 5q₁ while Firm 2 has a cost function of C C (9₂) Solve for the Nash-Cournot equilibrium. 9₁2813.33 units. (Enter your answer rounded to two decimal places.) 1416.67 units. (Enter your answer rounded to two decimal places.) 92 = 2092.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two firms competing in a duopoly produce differentiated products and the inverse demand for each firm is estimated to be: Firm 1: p₁ = 6340-9₁ -0.592 Firm 2: p₂ = 4260-92 -0.591. Firm 1 has cost function of C (9₁) = 5q₁ while Firm 2 has a cost function of C (9₂) = 2092. Solve for the Nash-Cournot equilibrium. 91 = 2813.33 units. (Enter your answer rounded to two decimal places.) 92 = 1416.67 units. (Enter your answer rounded to two decimal places.)
Transcribed Image Text:Two firms competing in a duopoly produce differentiated products and the inverse demand for each firm is estimated to be: Firm 1: p₁ = 6340-9₁ -0.592 Firm 2: p₂ = 4260-92 -0.591. Firm 1 has cost function of C (9₁) = 5q₁ while Firm 2 has a cost function of C (9₂) = 2092. Solve for the Nash-Cournot equilibrium. 91 = 2813.33 units. (Enter your answer rounded to two decimal places.) 92 = 1416.67 units. (Enter your answer rounded to two decimal places.)
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