The inverse demand is given by P = 30 0.25Q The marginal cost are given by...

 

Transcribed Image Text:

The inverse demand is given by P = 30 0.25Q The marginal cost are given by MCA = 10 MCB = 14 (a) What is MRA and MRB? (b) What is the profit maximizing condition for firm A and B? what is the reaction function for each firm? Sketch each function on the same diagram (c) How many units will firm A and B supply? Indicate on the same diagram. (d) What profit will firm A and B make? (e) Firms A and B engage in Stackelberg competition. Firm A is the Stackelberg leader. Find two quantities, the market price, and two profits. The inverse demand is given by P = 30 0.25Q The marginal cost are given by MCA = 10 MCB = 14 (a) What is MRA and MRB? (b) What is the profit maximizing condition for firm A and B? what is the reaction function for each firm? Sketch each function on the same diagram (c) How many units will firm A and B supply? Indicate on the same diagram. (d) What profit will firm A and B make? (e) Firms A and B engage in Stackelberg competition. Firm A is the Stackelberg leader. Find two quantities, the market price, and two profits.

Answer rating: 100% (QA)

Sure I can answer the questions in the image a MRA and MRB MRA and MRB stands for Marginal Revenue ... View the full answer