Total industry profit, T = 1 + 2 = $288 + $144 = $432. Compared to the Cournot equilibrium, total output has increased from 32 to 36, price has fallen from $21 to $17, and total profits have fallen from $512 to $432. Profits for Firm 1 have risen from $256 to $288, while the profits of Firm 2 have declined sharply from $256 to $144. B. How much will each firm produce, and what will its profit be?
QUESTION JAN 02, 2018 Total industry profit, T = 1 + 2 = $288 + $144 = $432.
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!
