Bookiesbaby358 Bookiesbaby358

16-01-2024
Business

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Two firms producing homogeneous products. They choose quantity simultaneously. This market and the two firms only exist for one period. Market demand: P = 150Q where Q = q1 + q2. Each firm has a constant marginal cost, MC = $30.
(a) Calculate the Cournot quantities, price, and profits.
(b) Market equilibrium
(c) Perfect competition
(d) Monopoly

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