question archive Consider the market for a (homogeneous) product where inverse demand is given by: P=120−Q
Consider the market for a (homogeneous) product where inverse demand is given by: P=120−Q
Subject:MarketingPrice:2.88 Bought3
Consider the market for a (homogeneous) product where inverse demand is given by: P=120−Q. A firm's cost function for producing the good:
C(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.
