ECON 361 - Consider a market with demand P(Q)

Question # 00621253 Posted By: dr.tony Updated on: 11/24/2017 05:14 AM Due on: 11/24/2017
Subject Economics Topic General Economics Tutorials:
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Consider a market with demand P(Q) = 108-2Q in

which two rms compete. Firm 1 faces TC1(Q) = 48Q

and rm 2 faces TC2(Q) = 36Q.

(a) Find the reaction function for rm 1.

(b) Find the reaction function for rm 2.

(c) Find the Cournot equilibrium (Q1;Q2; P).

(d) Determine prots for each rm and consumer surplus.

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  1. Tutorial # 00619939 Posted By: dr.tony Posted on: 11/24/2017 05:14 AM
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