QUESTION 10Suppose there are two firms that produce an identical product.The demand curve for the product is given byP = 62 - Qwhere Q is the total quantity produced by the two firms.Both firms choose their individual quantities qı20 and q22 0 simultaneously. Each firm has a marginal cost of 37.What is the market price when both firms produce the quantities in the unique Nash equilibrium?Give your answer as a number to two decimal places.

We have , P = 62 - Q MC = 37 Since the firms are choosing Quantities , they are playing cournot.

Answered: QUESTION 10 Suppose there are two firms…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.3P

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