. Consider the following duopoly. Demand is given by P = 10-Q, where Q = Q...

 

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. Consider the following duopoly. Demand is given by P = 10-Q, where Q = Q + Q, The firm's cost functions are : C,(Q) - 4 + 2Q, and C₂(Q₂) = 3 + 3Q, (a) Suppose both firms have entered the industry. What is joint profit maximising level of output? Howmuch will each firm produce? How would your answer change if the firms have not yet entered the industry? 15 (b) What is each firm's equilibrium output and profit if they behave non-co- 15 operatively? . Consider the following duopoly. Demand is given by P = 10-Q, where Q = Q + Q, The firm's cost functions are : C,(Q) - 4 + 2Q, and C₂(Q₂) = 3 + 3Q, (a) Suppose both firms have entered the industry. What is joint profit maximising level of output? Howmuch will each firm produce? How would your answer change if the firms have not yet entered the industry? 15 (b) What is each firm's equilibrium output and profit if they behave non-co- 15 operatively?

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9 4 We have P 100 Q Q Q 1Q C2 Q Joint will be 428 33Q Pro... View the full answer