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What is the best response of firm 1 if firm 2 chooses an output level of 200? (input a whole number:) 145 The best response function of firm 1 with respect to firm 2's quantity choice takes the form: 91 (92) = = w* (x − -Y * 92 − 2) - where (w,x,y,z) are parameters of the problem. Solve for this best response function and provide the product (w*x*y*z) in the next blank: What is the Nash Equilibrium quantity produced by firm 1? (round to the nearest whole number) 163 Assume the inverse demand function in a market is given by P(Q) = 500 - Q where Q is the total industry output, that is the sum of the output of all firms in the market. There are two firms (indexed by i = 1,2) who both have a cost of producing the good given by c(qi) = 10 * qi The two firms are competing in the Cournot manner, that is they choose their quantities simultaneously in order to maximize profits.

What is the best response of firm 1 if firm 2 chooses an output level of 200? (input a whole number:) 145 The best response function of firm 1 with respect to firm 2's quantity choice takes the form: 91 (92) = = w* (x − -Y * 92 − 2) - where (w,x,y,z) are parameters of the problem. Solve for this best response function and provide the product (w*x*y*z) in the next blank: What is the Nash Equilibrium quantity produced by firm 1? (round to the nearest whole number) 163 Assume the inverse demand function in a market is given by P(Q) = 500 - Q where Q is the total industry output, that is the sum of the output of all firms in the market. There are two firms (indexed by i = 1,2) who both have a cost of producing the good given by c(qi) = 10 * qi The two firms are competing in the Cournot manner, that is they choose their quantities simultaneously in order to maximize profits.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is the best response of firm 1 if firm 2 chooses an output level of 200? (input a whole number:) 145 The best response function of firm 1 with respect to firm 2's quantity choice takes the form: 91 (92) = = w* (x − -Y * 92 − 2) - where (w,x,y,z) are parameters of the problem. Solve for this best response function and provide the product (w*x*y*z) in the next blank: What is the Nash Equilibrium quantity produced by firm 1? (round to the nearest whole number) 163
Transcribed Image Text:What is the best response of firm 1 if firm 2 chooses an output level of 200? (input a whole number:) 145 The best response function of firm 1 with respect to firm 2's quantity choice takes the form: 91 (92) = = w* (x − -Y * 92 − 2) - where (w,x,y,z) are parameters of the problem. Solve for this best response function and provide the product (w*x*y*z) in the next blank: What is the Nash Equilibrium quantity produced by firm 1? (round to the nearest whole number) 163
Assume the inverse demand function in a market is given by P(Q) = 500 - Q where Q is the total industry output, that is the sum of the output of all firms in the market. There are two firms (indexed by i = 1,2) who both have a cost of producing the good given by c(qi) = 10 * qi The two firms are competing in the Cournot manner, that is they choose their quantities simultaneously in order to maximize profits.
Transcribed Image Text:Assume the inverse demand function in a market is given by P(Q) = 500 - Q where Q is the total industry output, that is the sum of the output of all firms in the market. There are two firms (indexed by i = 1,2) who both have a cost of producing the good given by c(qi) = 10 * qi The two firms are competing in the Cournot manner, that is they choose their quantities simultaneously in order to maximize profits.
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