You are given the market demand function Q=3400-1000p, and that each duopoly firm's marginal cost is...

  

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You are given the market demand function Q=3400-1000p, and that each duopoly firm's marginal cost is $0.07 per unit, which implies the cost function: C(q) = 0.07a assuming no fixed costs for i = 1,2. The Cournot equilibrium quantities are q = and 92 = (enter your responses as whole numbers). The Cournot equilibrium price is $ (round to the nearest penny). Calculate the Cournot profits: firm 1 $ and firm 2 $ (round both responses to the nearest cent). You are given the market demand function Q=3400-1000p, and that each duopoly firm's marginal cost is $0.07 per unit, which implies the cost function: C(q) = 0.07a assuming no fixed costs for i = 1,2. The Cournot equilibrium quantities are q = and 92 = (enter your responses as whole numbers). The Cournot equilibrium price is $ (round to the nearest penny). Calculate the Cournot profits: firm 1 $ and firm 2 $ (round both responses to the nearest cent).

Answer rating: 100% (QA)

To find the Cournot equilibrium quantities we first need to compute the reaction functions for each ... View the full answer