Market demand for widgets is p = 160 - 2Q. Whether there is just one firm selling widgets or many firms selling widgets, the marginal cost and average cost is 100. Assume there are two firms selling widgets acting as Stackelberg duopolists, with Firm 1 moving first and Firm 2 following. Further assume that Firm 1's marginal profit function at its maximum is Mπ(q1) = 75 - q1, where q1 is the amount of widgets sold by Firm 1. What is the quantity sold for each firm? Options are: Firm 1 sells 0 Firms 2 sells 80 Firm 1 sells 25 firm 2 sells 64.5 Firm 1 sells 15, Firm 2 sells 30 Firm 1 sells 7.5 Firm 2 sells 15 From question 12 (Stackelberg duopolists), what is the price of widgets? Options are:
Market demand for widgets is p = 160 - 2Q. Whether there is just one firm selling widgets or many firms selling widgets, the marginal cost and average cost is 100.
Assume there are two firms selling widgets acting as Stackelberg duopolists, with Firm 1 moving first and Firm 2 following. Further assume that Firm 1's marginal profit function at its maximum is Mπ(q1) = 75 - q1, where q1 is the amount of widgets sold by Firm 1. What is the quantity sold for each firm?
Options are:
Firm 1 sells 0 Firms 2 sells 80
Firm 1 sells 25 firm 2 sells 64.5
Firm 1 sells 15, Firm 2 sells 30
Firm 1 sells 7.5 Firm 2 sells 15
From question 12 (Stackelberg duopolists), what is the
Options are:
150
115
85
65
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
