Intel and AMD, the primary producers of computer central processing units (CPUs), compete with one another...

 

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Intel and AMD, the primary producers of computer central processing units (CPUs), compete with one another in the mid range chip category (among other categories). Assume that global demand for mid-range chips depends on the quantity that the two firms make, so that the price (in dollars) for mid range chips is given by P= 210-Q, where Q = q intel +qamd and where the quantities are measured in millions. Each mid range chip costs intel $60 to produce. Amds production process is more streamlined; each chip costs them only $48 to produce. A) Write the profit function for each firm in terms of qintel and qamd. find each firms best response rule. B) Find the Nash equilibrium price, quantity, and profit for each firm. Intel and AMD, the primary producers of computer central processing units (CPUs), compete with one another in the mid range chip category (among other categories). Assume that global demand for mid-range chips depends on the quantity that the two firms make, so that the price (in dollars) for mid range chips is given by P= 210-Q, where Q = q intel +qamd and where the quantities are measured in millions. Each mid range chip costs intel $60 to produce. Amds production process is more streamlined; each chip costs them only $48 to produce. A) Write the profit function for each firm in terms of qintel and qamd. find each firms best response rule. B) Find the Nash equilibrium price, quantity, and profit for each firm.