Competition among Companies (Extra Credit) 

a) Assume Cournot competition between Samsung and Hynix (both are solid state memory manufacturers). The Cost function for Samsung is C(q) = 60 q1, while the cost function for Hynix is C(qa) = 75q2. The Price function is PlQ) = 1500-Q. Determine the quantity and revenue for each company. 

b) Using the best response function from part (a), assume Samsung is the leader and Hynix is the follower. Assume the Price function is the same as part (a), yet the Total Cost TC= 60 Q. Determine the market price and revenue for each company.

Answer rating: 100% (QA)

Q 1500 P P 1500 Q R PQ 1500 QQ 1500Q Q2 Q 1500 P P 1500 Q So therefore When P 1500 Q ... View the full answer