Duopolists following the Cournot strategy face a market demand curve given by P = 90 - 2Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 40 per unit. How much profit will each firm make? Round to the nearest whole number.

Duopolists following the Cournot strategy face a market demand curve given by P = 90 - 2Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 40 per unit. How much profit will each firm make? Round to the nearest whole number.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Both these question of same subparts so both the solve

Duopolists following the Cournot strategy face a market demand curve given by P
= 90 - 2Q where Q is total market demand. Each firm can produce output at a
constant marginal cost of 40 per unit. How much profit will each firm make? Round
to the nearest whole number.

Duopolists following the Bertrand pricing strategy face a market demand curve
given by P = 90 - 2Q where Q is total market demand. Each firm can produce
output at a constant marginal cost of 40 per unit. How much revenue will each firm
make?

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