question archive Consider the market for a (homogeneous) product where inverse demand is given by: P=120−QP=120−Q
Consider the market for a (homogeneous) product where inverse demand is given by: P=120−QP=120−Q
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Consider the market for a (homogeneous) product where inverse demand is given by: P=120−QP=120−Q. A firm's cost function for producing the good: C(q)=0.5q2+40qC(q)=0.5q2+40q.
A) Suppose that there are two identical firms in the market. Find the Cournot-Nash equilibrium.
B) Suppose that there are two identical firms in the market but one acts as a quantity leader. Find the SPNE (Stackelberg) equilibrium.
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