The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is The inverse demand for Firm 2 is P₂=70-02-0.501- Each firm has a marginal cost of m=$1 per unit. Solve for the Nash-Coumot equilibrium quantities. The Courot equilibrium quantities are and P₁-52-9₁-0.592 (Enter your responses rounded to two decimal places.) 4₁-units 12-units. 92

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.5P
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The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is
The inverse demand for Firm 2 is
P₂=70-02-0.501-
Each firm has a marginal cost of m=$1 per unit. Solve for the Nash-Coumot equilibrium quantities.
The Cournot equilibrium quantities are
and
P₁-52-91-0.592
(Enter your responses rounded to two decimal places.)
4₁ = units
92
units.
possibi
Transcribed Image Text:The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is The inverse demand for Firm 2 is P₂=70-02-0.501- Each firm has a marginal cost of m=$1 per unit. Solve for the Nash-Coumot equilibrium quantities. The Cournot equilibrium quantities are and P₁-52-91-0.592 (Enter your responses rounded to two decimal places.) 4₁ = units 92 units. possibi
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