Friday

November 28, 2014

November 28, 2014

Posted by **jenny** on Sunday, September 7, 2008 at 11:03pm.

(a)Write down the profit equations for firms A and B.

(b)Write down the marginal revenue equations for firms A and B.

(c)Write down the reaction functions for firms A and B.

(d)Graph the reaction functions for firms A and B.

(e)Calculate the Cournot equilibrium outputs for this market. Plot them on the graph.

(f)What is the price charged in this market?

(g)What is the industry output?

(h)Does the result of identical prices charged by the two firms depend on them having identical marginal costs? Explain.

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