V1 5. Use the given information, to answer the following questions. .the PhilYAP = 200 - (Q1 + Q2) ---- industry demandTC, = 10Q1 ---- total cost of Firm 1TC2 = 10Q2 -- total cost of Firm 2a. Derive firm l's reaction functionb. Derive firm 2's reaction functionc. Compute for the firms' Cournot equilibrium output.

Industry Demand : P=200-(Q1+Q2) TC1=10Q1 TC2=10Q2 a. Deriving Firm 1's reaction function Firm 1's…

5. Use the given information, to answer the following questions.. P = 200 - (Q: + Qz) ---- industry demand TC = 10Q1 ---- total cost of Firm 1 TC2 = 10Q2 ---- total cost of Firm 2 he Phi a. Derive firm l's reaction function b. Derive firm 2's reaction function AY c. Compute for the firms' Cournot equilibrium output.

5. Use the given information, to answer the following questions.. P = 200 - (Q: + Qz) ---- industry demand TC = 10Q1 ---- total cost of Firm 1 TC2 = 10Q2 ---- total cost of Firm 2 he Phi a. Derive firm l's reaction function b. Derive firm 2's reaction function AY c. Compute for the firms' Cournot equilibrium output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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