Duopoly quantity-setting firms face the market demand ( = 150 - q1 - q2. Each firm has

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Duopoly quantity-setting firms face the market demand
( = 150 - q1 - q2.
Each firm has a marginal cost of $60 per unit.
a. What is the Nash-Cournot equilibrium?
b. What is the Stackelberg equilibrium when Firm 1 moves first?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Dec 29, 2017 01:02 AM

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Duopoly quantity-setting firms face the market demand p = 150 - q1 - q2. Each firm has a marginal cost of $ 60 per unit. What is the Nash-Cournot equilibrium?
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Duopoly quantity-setting firms face the market demand ( = 150 - q1 - q2. Each firm has

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a Using Equation 1416 the Cournot equilibrium quantity for each of the duopoly firms is q a m3b ...View the full answer

Microeconomics Theory and Applications with Calculus

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