to be: Consider a duopoly in which the two firms produce differentiated products and the inverse demand for each firm is estimated Firm 1: p₁ (91-92) = 3805-9₁ -0.592 Firm 2: P2 (92,91) =2570-92 -0.59₁. Firm 1 has constant marginal costs of $15 per unit while Firm 2 has constant marginal costs of $30 per unit. Fixed costs are negligble for both firms. Solve for the Nash-Stackelberg equilibrium, assuming Firm 1 is the Stackelberg leader. 9₁ = 1802.86 units. (Enter your answer rounded to two decimal places.) 92= 819.29 units. (Enter your answer rounded to two decimal places.)
to be: Consider a duopoly in which the two firms produce differentiated products and the inverse demand for each firm is estimated Firm 1: p₁ (91-92) = 3805-9₁ -0.592 Firm 2: P2 (92,91) =2570-92 -0.59₁. Firm 1 has constant marginal costs of $15 per unit while Firm 2 has constant marginal costs of $30 per unit. Fixed costs are negligble for both firms. Solve for the Nash-Stackelberg equilibrium, assuming Firm 1 is the Stackelberg leader. 9₁ = 1802.86 units. (Enter your answer rounded to two decimal places.) 92= 819.29 units. (Enter your answer rounded to two decimal places.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter12: Price And Output Determination: Oligopoly
Section: Chapter Questions
Problem 2E
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