Suppose that Ford and GM compete as Cournot duopolists in the market for SUVs. It is known
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that Ford and GM compete as Cournot duopolists in the market for SUVs. It is known that both firms have the same constant marginal cost curve, which is MC-16,000. Furthermore, in the Cournot equilibrium, a total market quantity of 28 SUVs is produced, and the price for each SUV is $44,000. Assuming it is linear, what is the market demand curve?
a)P -58,000-500Q
b) P-100,000 - 2,0000
c) P- 44,000 -1,0000
d) Not enough information has been given to answer this question.
Related Book For
Microeconomics Theory and Applications
ISBN: 978-1118758878
12th edition
Authors: Edgar K. Browning, Mark A. Zupan
Posted Date: