Derive the profit frontier and explain why total profits, Ask an Expert

Economics

Two firms produce homogeneous outputs with cost functions

C₁=q₁^2

C₂=2q₂^2and the inverse market demand functionp=100-(q1+q2)

Derive the profit frontier, and explain why total profits fall as the firms redistribute profit between themselves by redistributing output.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9414185

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