Assume that there are two firms in the market described by the inverse demand function P(q1,q2)%3D186 - (2/2)(q1+q2). Firm 1 has marginal costs of 51 and decides on first. Firm 2 has marginal costs of 62 and moves second. Both firms decide on quanties once. How much does firm 1 produce in equilibrium?

Assume that there are two firms in the market described by the inverse demand function P(q1,q2)%3D186 - (2/2)(q1+q2). Firm 1 has marginal costs of 51 and decides on first. Firm 2 has marginal costs of 62 and moves second. Both firms decide on quanties once. How much does firm 1 produce in equilibrium?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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