Firms 1 and 2 produce differentiated goods. Firm 1s inverse demand function is p1 = 260

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Firms 1 and 2 produce differentiated goods. Firm 1’s inverse demand function is p1 = 260 – 2q1 – q2, while Firm 2’s inverse demand function is p2 = 260 – 2q2 – q1. Each firm has a constant marginal cost of 20. What is the Nash-Cournot equilibrium in this market?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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