Question: Two firms compete in a market to sell a homogeneous

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 – 3Q. Each firm produces at a constant marginal cost of $ 300 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior.




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  • CreatedApril 18, 2014
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