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2 firms compete by choosing what quantity to produce. Firm 1 faces a per unit cost of $10, while firm 2 faces a per unit cost of $4, and market demand follows P (Q) = 160 - 2Q Answer only as integer numbers (for example, 3, and not "three" or 3.0, or $3) a) What quantity should firm 1 produce? b) What quantity should firm 2 produce? c) What is the market price? 2 firms compete by choosing what quantity to produce. Firm 1 faces a per unit cost of $10, while firm 2 faces a per unit cost of $4, and market demand follows P (Q) = 160 - 2Q Answer only as integer numbers (for example, 3, and not "three" or 3.0, or $3) a) What quantity should firm 1 produce? b) What quantity should firm 2 produce? c) What is the market price?
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To determine the optimal quantities for each firm and the market price we need to consider their pro... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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