and for Firm 2 is P₂ = 100-92-0.5q₁. marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities. ilibrium quantities are Onses rounded to two decimal places.) 91 = 92 units units.

and for Firm 2 is P₂ = 100-92-0.5q₁. marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities. ilibrium quantities are Onses rounded to two decimal places.) 91 = 92 units units.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.5P

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Question

The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is
The inverse demand for Firm 2 is
and
P₁ = 52-9₁-0.592.
Each firm has a marginal cost of m= $1 per unit. Solve for the Nash-Cournot equilibrium quantities.
The Cournot equilibrium quantities are
(Enter your responses rounded to two decimal places.)
P₂ = 100-92-0.5q1₁.
91 =
units
92 units.
=

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