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.
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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