You are given the market demand function Q = 1000 – 1000p, and that each duopoly firm's marginal cost is $0.28 per unit, which implies the cost function: C(4:) = 0.28q;. assuming no fixed costs for i = 1, 2. The Cournot equilibrium quantities are q, = 240 and q, = 240 (enter your responses as whole numbers). The Cournot equilibrium price is $|| (round to the nearest penny).

You are given the market demand function Q = 1000 – 1000p, and that each duopoly firm's marginal cost is $0.28 per unit, which implies the cost function: C(4:) = 0.28q;. assuming no fixed costs for i = 1, 2. The Cournot equilibrium quantities are q, = 240 and q, = 240 (enter your responses as whole numbers). The Cournot equilibrium price is $|| (round to the nearest penny).

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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