Question: Suppose Comcast ( C ) and Verizon ( V ) have a constant ( mathrm { MC } = mathrm { AC
Suppose Comcast C and Verizon V have a constant mathrmMCmathrmAC$ per customer connected to their internet network. The market inverse demand curve for basic internet service is given by:
beginarrayl
mathrmPmathrmQ
mathrmQmathrmqmathrmcmathrmqmathrmv
endarray
A Find the CournotNash equilibrium output, price and profit for each firm
B Find the output, price, and profit for each firm if the two were to collude
C Suppose now Comcast is a Stackelberg leader. Find each firm's output, price, and profit
D Find the output, price, and profit for each firm if they were to compete on price instead of quantity.
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