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28 Sep 2019
Joe and Rebecca are small-town ready-mix concrete duopolists. The market demand function is Qd= 10,000 - 100P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $25 per cubic yard. Suppose that Joe and Rebecca compete in prices and competition in this market is described by the Cournot model. Consumers perceive the ready-mix concrete produced by the two firms as identical products. Find the Nash equilibrium prices when the two firms set their prices simultaneously.
Joe and Rebecca are small-town ready-mix concrete duopolists. The market demand function is Qd= 10,000 - 100P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $25 per cubic yard. Suppose that Joe and Rebecca compete in prices and competition in this market is described by the Cournot model. Consumers perceive the ready-mix concrete produced by the two firms as identical products. Find the Nash equilibrium prices when the two firms set their prices simultaneously.
Retselisitsoe PokothoaneLv10
28 Sep 2019
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