Posted by **jenny** on Sunday, September 7, 2008 at 11:01pm.

Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal constant of $4.

(a)Write down the Bertrand equilibrium prices for this market.

(b)Calculate the industry output.

(c)Solve for the Cournot and Stackelberg equilibrium outputs, and compare to the Bertrand equilibrium.

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