Let the inverse demand curve be pq a minus bq suppose, Ask an Expert

Economics

Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C.

A) (Cournot) If both firms move simultaneously, what are their equilibrium strategies and what is the equilibrium outcome?

B) (Stackelberg) If the first firm moves before the second firm, how does your answer change?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91857184

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