ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Economics
Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 432 - 7 Qb.
The marginal cost for firm 1 is given by mc1 = 8 Q.
The marginal cost for firm 2 is given by mc2 = 5 Q.
(Assume firm 1 has a fixed cost of $ 90 and firm 2 has a fixed cost of $ 103 .)
What is level of total surplus in the duopoly equilibrium ?
hint: 8597.86
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