Two firms, Acme and Roadco, produce anvils, and compete with each other as Cornet oligopolists (i.e. they compete in quantities). The (inverse) demand for anvils is given by P(Q)=500-3Q. Both firms have constant marginal costs of MC=50 and no fixed costs. Hint: the partial derivative of (c-bX-bY)X with respect to X is c-2bX-bY.

1. What is the equilibrium consumer and producer surplus in the market? 

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To find the equilibrium consumer and producer surplus in the market we first need to determine the e... View the full answer