Question: Please help Suppose rm 1 and rm 2 each produce the same product and face a market demand cunre described by U250tltl2tlP. Firm 1 has


Please help


Suppose rm 1 and rm 2 each produce the same product and face a market demand cunre described by U250tltl2tlP. Firm 1 has a unit cost of production c1 equal to 6 whereas rm 2 has a higher unit cost of production c2 equal to 1D. Assume each has the capacity.r to serve the entire market and rms must charge prices in whole numbers lie. rms can't charge a price of $6.99. only $6, $T, etc.) Is this outcome efficient? QNo D Yes What if a third rm enters who can produce at M026. is the outcome efcient? D Yes DNo Consider a Stackelberg game of quantity competition between two firms. Firm 1 is the leader and rm 2 is the follower. Market demand is described by the inverse demand function P21004Q. Each rm has a constant unit cost of production equal to 20. How much does the leader produce? C) 1oo C) 15o (3. 122.5 C) 147.25 Question 10 4 pts Consider a Stackelberg game of ouantityl competition between two rms. Firm 1 is the leader and firm 2 is the follower. Market demand is described by the inverse demand function Pztd. Each rm has a constant unit cost of production equal to 20. How much does the follower produce? C) 22.5 c. 61.25 C} see DEG
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