Posted by **James** on Wednesday, April 9, 2008 at 9:15pm.

ok so i must have not payed attention in class when we talked about asymmetric costs in cournot duopoly's, so i am stuck on a homework problem. The problem reads as follows (*Note that my notation of c simply means Marginal Cost):

Consider a Cournot duopoly where inverse demand is P(Q) = a - Q but firms, 1 and 2, have asymmetric marginal costs, c1 and c2. What is the Nash equilibrium if 0 <ci < a/2 for each firm? What if c1 < c2 < a but 2c2 > a + c1?

Basically, I can get it down to each firm's individual reaction function's, but I am always used to assuming that the firms are identical (thus having the same marginal costs). I just wanted to maybe know the algebra behind this or simply the intution. If anyone could help that would be cool.

## Answer This Question

## Related Questions

- managerial economicsQ4 - Consider a Cournot duopoly, composed of firms A & B ¡V ...
- Microeconomics - Hello, Need some help with a Cournot duopoly question. The MD ...
- Language - Hi! So I am having a hard time in Chinese class. Paying Attention ...
- Algenra - How do I work this problem, it is not a homework problem but a problem...
- Algebra - How do I work this problem, it is not a homework problem but a problem...
- Economics - What are the limitations of cournot duopoly model?
- Microeconomics - I am stuck trying to illustrate poverty in an Edgeworth box. ...
- Chemistry - Can someone please help me solve this homework problem for my ...
- Economics - Given P=140-0.6Q, TC1=7q1, TC2=0.6q2 the power of 2. A. Determine ...
- Finance - i Craig: I am already having trouble understanding Chapter 6, problem ...

More Related Questions