Selpak, like Kleenex in USA, has realized product-brand identity in a monopolistic competitive market with many...

   

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Selpak, like Kleenex in USA, has realized product-brand identity in a monopolistic competitive market with many substitutes and with free entry. Assume that Selpak is the first mover, declaring the quantity it will produce and further assume that the rest of the firms make up a single firm (firm 2) for a duopoly model. If the demand function is P-30-Q, MC1-MC2-0 and the firm 2's reactio function is Q = 15 - ½ Q2, find profit maximizing Discuss whether this mark structure is still monopolistic competition. Selpak, like Kleenex in USA, has realized product-brand identity in a monopolistic competitive market with many substitutes and with free entry. Assume that Selpak is the first mover, declaring the quantity it will produce and further assume that the rest of the firms make up a single firm (firm 2) for a duopoly model. If the demand function is P-30-Q, MC1-MC2-0 and the firm 2's reactio function is Q = 15 - ½ Q2, find profit maximizing Discuss whether this mark structure is still monopolistic competition.

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To find the profitmaximizing quantity for Selpak we need to set up the profi... View the full answer