Table 17-4Only two firms, ABC and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.O a. $5O b. $15Price(Dollars perunit)Oc. $20O d. $1028262422201816141210864200510152025303540455055606570Refer to Table 17-4. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?QuantityDemanded(Units)TotalRevenue(Dollars)01302403304004504804904804504003302401300

The marginal cost of each firm =$8 and the fixed cost is zero. The quantity demanded is a linear…

Table 17-4 Only two firms, ABC and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost. Price (Dollars per unit) 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Quantity Demanded (Units) 0 5 10 15 20 25 30 35 Total Revenue (Dollars) 0 130 240 330 400 450 480 490 480 450 400 330 240 130 0 40 45 50 55 60 65 70 Refer to Table 17-4. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits? O a. $5 O b. $15 O c. $20 O d. $10

Table 17-4 Only two firms, ABC and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost. Price (Dollars per unit) 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Quantity Demanded (Units) 0 5 10 15 20 25 30 35 Total Revenue (Dollars) 0 130 240 330 400 450 480 490 480 450 400 330 240 130 0 40 45 50 55 60 65 70 Refer to Table 17-4. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits? O a. $5 O b. $15 O c. $20 O d. $10

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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