Two producers having equal positions on a market offer two substitute prod- ucts. The demand for these
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Two producers having equal positions on a market offer two substitute prod- ucts. The demand for these products evolves according to the following demand functions:
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y (P, P2) = ap +2 +, == y (P1, P2)=a2p2 + y2P1 + b2, ai, vi, bi > 0, ai yi i 1, 2. Production total costs for the first and for the second firm, respectively, are as follows: clot(y) Ciy1 + d, chot (y2) = C2y2 + d, c2, d > 0. An output level of each product matches the demand reported by consumers for this product by its given price: Vi = yi (P1, P2), Ci, d > 0, i = 1, 2.
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Related Book For
Microeconomics Static And Dynamic Analysis Springer Texts In Business And Economics
ISBN: 9783031105531
1st Edition
Authors: Krzysztof Malaga, Karolina Sobczak
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