2 Imperfect competition (2022) Two companies, Thomas Inc and Edison Inc, are the only producers of electrical vehicles. The demand for electrical vehicles is given by P=200-2qr-29E, where qr is the quantity Thomas Inc produces and qeis the quantity Edison Inc. produces. Both Thomas Inc and Edison Inc produce electrical vehicles at a constant marginal and average cost of $20 per vehicle. 20p a Find the total quantity of electrical vehicles produced in the Cournot equilibrium! 2.0p b Suppose that (for this subquestion only) the (marginal and average) cost per vehicle changes to $50. How does this affect total quantity and price in Cournot equilibrium? For both total quantity and price, state whether it goes up, down, or stays the same (no further explanations are required). The total quantity produced and the price
2 Imperfect competition (2022) Two companies, Thomas Inc and Edison Inc, are the only producers of electrical vehicles. The demand for electrical vehicles is given by P=200-2qr-29E, where qr is the quantity Thomas Inc produces and qeis the quantity Edison Inc. produces. Both Thomas Inc and Edison Inc produce electrical vehicles at a constant marginal and average cost of $20 per vehicle. 20p a Find the total quantity of electrical vehicles produced in the Cournot equilibrium! 2.0p b Suppose that (for this subquestion only) the (marginal and average) cost per vehicle changes to $50. How does this affect total quantity and price in Cournot equilibrium? For both total quantity and price, state whether it goes up, down, or stays the same (no further explanations are required). The total quantity produced and the price
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter9: Monopoly
Section: Chapter Questions
Problem 1QFR
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