ECON373 Industrial Organizations Economics
Questions:1. Market demand isP=224–4Q, where Q is the total output. There are two firms producing in this market, each has total costs ð¶=ð‘žð‘–2, where ð‘–=1,2. Marginal costsare ð‘€ð¶ð‘–=2ð‘žð‘–, notice they are not constant.a.Calculatethe Cournot equilibrium firm outputs, market price, firms’ profitsb.Calculatethe Stackelberg equilibrium firm outputs, market price, firms’ profits (firm 1 is a leader in deciding their output, and firm 2 is a […]
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