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Sun 10 Apr, 2016 07:47 pm
If the inverse demand function is P=175-3Q, where Q is the Quantity, P is the market price, and suppose the cost function is , i=1,2. Find:
1. Cournot quantity, price, consumer surplus, and each firm`s profit( Hint: two firms are operating in this market)?.
2. Stackelberg price, quantity, each firm`s profit:
a. If firm 1 leads firm 2?
b. If firm 2 leads firm 1?
3. Collusion price and quantity?