Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of 9, = 100 - 2p, + 1p2. where q, is Firm 1's output, p, is Firm 1's price, and p, is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 100 - 2p2 + 1p,. Solve for the Bertrand equilibrium. In equilibrium, p, equals $ 44 and p2 equals $ 44. (Enter numeric responses using integers.) At these prices, q1 equals and q2 equals The total quantity supplied is.

Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of 9, = 100 - 2p, + 1p2. where q, is Firm 1's output, p, is Firm 1's price, and p, is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 100 - 2p2 + 1p,. Solve for the Bertrand equilibrium. In equilibrium, p, equals $ 44 and p2 equals $ 44. (Enter numeric responses using integers.) At these prices, q1 equals and q2 equals The total quantity supplied is.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.4P

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