Please solve, so I can verify or troubleshoot problem. (a) For what values of x does this game have a unique Nash equilibrium? What is that
September 3, 2020
If an economy is operating inside its production possibilities curve for consumer goods and capital goods, it: A) must improve its technology to…
September 3, 2020

Suppose that market demand for golf balls is described by Q = 90 − 3P, where Q is measured in kilos of balls. There are two firms that supply the market.

Firm 1 can produce a kilo of balls at a constant unit cost of $15 whereas firm 2 has a constant unit cost equal to $10.

a) Suppose the firms compete in quantities. How much does each firm sell in a Cournot equilibrium? What is the market price and what are the firms’ profits?

b) Suppose the firms compete in price. How much does each firm sell in a Bertrand equilibrium? What is market price and what are the firms’ profits?

KM
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