Question: Hi there, can I get some help on the attached question? There is no further information aside from what is provided in the screen shot.

Hi there, can I get some help on the attached question? There is no further information aside from what is provided in the screen shot.

Hi there, can I get some help on the attached question? There

A duopoly faces a market demand of p = 120 -Q. Firm 1 has a constant marginal cost of MC' = $20. Firm 2's constant marginal cost is MC = $40. Calculate the output of each firm, market output, and price if there is (a) a collusive equilibrium or (b) a Cournot equilibrium. The collusive equilibrium occurs where q, equals and q2 equals . (Enter numeric responses using real numbers rounded to two decimal places) Market output is The collusive equilibrium price is $. The Cournot-Nash equilibrium occurs where q, equals and q2 equals Market output is Furthermore, the equilibrium occurs at a price of $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!