Description of this paper

ECO - Two firms compete by selling an identical product in a market with a demand

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solution


Question

Question;Two firms compete by selling an identical product in a market with a demand of P = 100 - 2Q. Firm 1 has a marginal cost of $20 per unit. Firm 2 has a marginal cost of $0 per unit. Modeling this market as a Cournot duopoly, what quantities are produced by each firm? What is the market price for the product? How much profit is realized by each firm?

 

Paper#57642 | Written in 18-Jul-2015

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