Two firms compete as a duopoly. The demand they face is P = 100 - 3Q. The
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Two firms compete as a duopoly. The demand they face is P = 100 - 3Q. The cost function for each firm is C(Q) = 4Q.
- Determine output, and profits for each firm in a Cournot oligopoly
- If firms collude, determine output and profit for each firm.
- If firm 1 cheats on the collusion in item 2, determine output and profit for each firm.
- Graph the reaction functions and identify the points from parts 1, 2 and 3.
- Determine output, and profits for each firm in a Stackelberg oligopoly.
Expert Answer:
The detailed answer for the above question is provided below To determine the output and profits for each firm in a Cournot oligopoly we need to analyze the strategic interaction between the firms In ... View the full answer
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