Consider a two-firm duopoly facing a linear demand curve: P=1,600-Q. Assume MCA=MCB=AC=100 Where: P= Price Q= total output of the market, thus Q=QA+QB a. find the profit-maximizing output( cournot equilibrium output) b. find the cournot equilibrium price of firm A and firm B. 3. discuss how agricultural insurance could help farmers improve farm activity.
Consider a two-firm duopoly facing a linear demand curve: P=1,600-Q. Assume MCA=MCB=AC=100 Where: P= Price Q= total output of the market, thus Q=QA+QB a. find the profit-maximizing output( cournot equilibrium output) b. find the cournot equilibrium price of firm A and firm B. 3. discuss how agricultural insurance could help farmers improve farm activity.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter12: Price And Output Determination: Oligopoly
Section: Chapter Questions
Problem 2E
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Consider a two-firm duopoly facing a linear demand curve: P=1,600-Q. Assume MCA=MCB=AC=100
Where: P= Price Q= total output of the market, thus Q=QA+QB
a. find the profit-maximizing output( cournot equilibrium output)
b. find the cournot
3. discuss how agricultural insurance could help farmers improve farm activity.
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