Koak and Pepsee are the only producers of soft drinks: TCk = 100 + 5q & TCp=100+10q
Question # 00183193
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Updated on: 01/31/2016 03:04 AM Due on: 01/31/2016
Koak and Pepsee are the only producers of soft drinks: TCk =
100 + 5q & TCp=100+10q The market demand for soft drinks is: Q = 1000
– 10P.
a) If the firms behave as Cournot competitors, find the Nash equilibrium price,
output per firm, and profit per firm.
b) If the firms behave as Stackelberg competitors, with Koak the leader, find
the Nash equilibrium price, output per firm, and profit per firm.
c) If the firms collude to maximize their combined profit, find the price,
output per firm, and profit per firm assuming they split the profits evenly.
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Rating:
5/
Solution: Koak and Pepsee are the only producers of soft drinks: TCk = 100 + 5q & TCp=100+10q