= Two firms sell substitutable products; the market price is: P = 90 - Q, where Q Q₁ + Q₂ is the total market quantity, which consists of Q₁ (the quantity produced by Firm 1) and Q2 (the quantity produced by Firm 2). The firms choose their quantities simultaneously. Firm 1's costs are C₁ = 10- 6Q₁+Q². Firm 2's costs are C₂ = Q². Which is the best response function for Firm 2? Q₂ O = 15. O Q₂ = 30 - ²0₁₁ 2 Q₂ = 42 + ²/ Q₁₁ 3 Q₂ = 45. What is the equilibrium market quantity Q? Q = 15.25. Q = 30. Q = 46.5. Q = 50. What is the equilibrium market price P? P = 90. P = 60. P = 43.5. P = 10.
= Two firms sell substitutable products; the market price is: P = 90 - Q, where Q Q₁ + Q₂ is the total market quantity, which consists of Q₁ (the quantity produced by Firm 1) and Q2 (the quantity produced by Firm 2). The firms choose their quantities simultaneously. Firm 1's costs are C₁ = 10- 6Q₁+Q². Firm 2's costs are C₂ = Q². Which is the best response function for Firm 2? Q₂ O = 15. O Q₂ = 30 - ²0₁₁ 2 Q₂ = 42 + ²/ Q₁₁ 3 Q₂ = 45. What is the equilibrium market quantity Q? Q = 15.25. Q = 30. Q = 46.5. Q = 50. What is the equilibrium market price P? P = 90. P = 60. P = 43.5. P = 10.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter12: Price And Output Determination: Oligopoly
Section: Chapter Questions
Problem 5E
Related questions
Question
![=
Two firms sell substitutable products; the market price is: P = 90-Q, where Q Q₁ + Q₂ is the
total market quantity, which consists of Q₁ (the quantity produced by Firm 1) and Q₂ (the quantity
produced by Firm 2). The firms choose their quantities simultaneously. Firm 1's costs are C₁ = 10-
6Q₁ +Q². Firm 2's costs are C₂ = Q².
Which is the best response function for Firm 2?
O
O
O
O
Q₂ = 15.
1
Q₂ = 30 - ²0₁₁
3
Q₂ = 42 + ²³² Q₁₁
2
=
1.
3
Q₂ = 45.
What is the equilibrium market quantity Q?
O Q = 15.25.
O Q = 30.
Q = 46.5.
O Q = 50.
What is the equilibrium market price P?
O P = 90.
O P = 60.
O P = 43.5.
O P = 10.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cc58a7f-a992-40b4-aee2-b48b5930b05b%2Fe1b0da7d-6169-4736-bb5e-31a52c365e06%2Fbb1wzl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:=
Two firms sell substitutable products; the market price is: P = 90-Q, where Q Q₁ + Q₂ is the
total market quantity, which consists of Q₁ (the quantity produced by Firm 1) and Q₂ (the quantity
produced by Firm 2). The firms choose their quantities simultaneously. Firm 1's costs are C₁ = 10-
6Q₁ +Q². Firm 2's costs are C₂ = Q².
Which is the best response function for Firm 2?
O
O
O
O
Q₂ = 15.
1
Q₂ = 30 - ²0₁₁
3
Q₂ = 42 + ²³² Q₁₁
2
=
1.
3
Q₂ = 45.
What is the equilibrium market quantity Q?
O Q = 15.25.
O Q = 30.
Q = 46.5.
O Q = 50.
What is the equilibrium market price P?
O P = 90.
O P = 60.
O P = 43.5.
O P = 10.
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