Question;Consider a two? firm industry (duopoly). The two firms, SL Machines and GG Machines, compete throughCournot quantity?setting competition. The demand curve for the industry is P=100?Q, where Q is the totalquantity produced by SL and GG. Currently, each firm has marginal cost of $40 and no fixed cost. Show that the equilibrium price is $60, with each firm producing 20 machines and earning profits of $400.Please show your work.
Paper#56344 | Written in 18-Jul-2015Price : $21