Two firms are competing on a market with demand P-47-3Q by simultaneously choosing what price to...
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Two firms are competing on a market with demand P-47-3Q by simultaneously choosing what price to charge. Assume they can charge any real price (not just limited to integer numbers) Whoever charges the lowest price can capture the whole demand. If prices are the same, firm 1 captures the whole demand (and 2 does not sell anything) Firm 1 has a marginal cost equal to 5. Firm 2 has marginal cost equal to 8. What is the equilibrium price in this market? [Select ] If firm 2's marginal cost increased to 30, what would be the equilibrium price in this market? [Select] Two firms are competing on a market with demand P-47-3Q by simultaneously choosing what price to charge. Assume they can charge any real price (not just limited to integer numbers) Whoever charges the lowest price can capture the whole demand. If prices are the same, firm 1 captures the whole demand (and 2 does not sell anything) Firm 1 has a marginal cost equal to 5. Firm 2 has marginal cost equal to 8. What is the equilibrium price in this market? [Select ] If firm 2's marginal cost increased to 30, what would be the equilibrium price in this market? [Select]
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Answer rating: 100% (QA)
To find the equilibrium price in the market we need to determine the price at which both firms have ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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