Two firms compete and choose quantities. Firm 1 chooses first (unchangeable) Demand is given by D(p) = 300 ? 3p and each firm’s marginal cost is MC(q) = 3q. What quantity does firm 1 choose? What quantity does firm 2 choose? What is the market price?

Answer rating: 100% (QA)

We can solve this using the Cournot competition model which involves finding the Nash Equilibrium In ... View the full answer