The Cournot equilibrium quantities for Firm 1 (9₁) and Firm 2 (9₂) are and The Cournot equilibrium price is Profit for Firm 1 is and profit for Firm 2 is To block entry, the incumbent appeals to the government $40? The Cournot equilibrium quantities for Firm 1 (9₁) and Firm 2 (9₂) are and 9₁30 units 9₂= 60 units. (Enter numeric responses using real numbers rounded to two decimal places.) p=$70 x₁ = $900 *₂ = $3600 require that the entrant incur extra costs. What happens to the Courot equilibrium if the legal requirement causes the marginal cost of the second firm to rise to that of the first firm, 9₁ = units 9₂-units.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 9CQ
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The Cournot equilibrium quantities for Firm 1 (9₁) and Firm 2 (92) are
and
The Cournot equilibrium price is
Profit for Firm 1 is
and profit for Firm 2 is
9₁ = 30 units
and
9₂= 60 units. (Enter numeric responses using real numbers rounded to two decimal places.)
p=$70.
x₁ = $900
*₂ =$ 3600.
To block entry, the incumbent appeals to the government to require that the entrant incur extra costs. What happens to the Cournot equilibrium if the legal requirement causes the marginal cost of the second firm to rise to that of the first firm,
$40?
The Cournot equilibrium quantities for Firm 1 (9₁) and Firm 2 (9₂) are
9₁ = units
9₂-units.
Transcribed Image Text:The Cournot equilibrium quantities for Firm 1 (9₁) and Firm 2 (92) are and The Cournot equilibrium price is Profit for Firm 1 is and profit for Firm 2 is 9₁ = 30 units and 9₂= 60 units. (Enter numeric responses using real numbers rounded to two decimal places.) p=$70. x₁ = $900 *₂ =$ 3600. To block entry, the incumbent appeals to the government to require that the entrant incur extra costs. What happens to the Cournot equilibrium if the legal requirement causes the marginal cost of the second firm to rise to that of the first firm, $40? The Cournot equilibrium quantities for Firm 1 (9₁) and Firm 2 (9₂) are 9₁ = units 9₂-units.
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