The market demand in a homogeneous-product Cournot duopoly is P = 113 - 2.2Q, where Q = Q1 + Q2 (Firm 1 and Firm 2), and the costs functions for each firm are: TC1 = 25 + 16.3Q1 and TC2 = 29 + 27.7Q2.  Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Complete the following table.

Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
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Problem 12SQ: A common characteristic of oligopolies is a. interdependence in pricing decisions. b. independent...
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The market demand in a homogeneous-product Cournot duopoly is P = 113 - 2.2Q, where Q = Q1 + Q2 (Firm 1 and Firm 2), and the costs functions for each firm are: TC1 = 25 + 16.3Q1 and TC2 = 29 + 27.7Q2. 

Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations.

Complete the following table.

 

Q1

Q2

P

Profits F1

Profits F2

F1 cheats w/ QDC, F2 colludes

 

 

 

 

 

F1 cheats w/ QBRF,  F2 2 colludes

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