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Two firms engage in simultaneousmove quantity competition .pdf

The document discusses a Cournot competition between two firms with a given market demand and total cost equations. It identifies the profit-maximizing quantities for firm 1 as 2 units and for firm 2 as 3 units. The document also mentions the calculation of the profit-maximizing price.

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Two firms engage in simultaneous-move quantity competition (Cournot). The market demand is given as P = 220 - Q where Q = q1 + q2. Firm 1s total cost is given as TC1 = 30 q1. Firm 2s total cost is given as TC2 = 15 q2. 1. The profit-maximizing quantity of Firm 1 is 2. The profit-maximizing quantity of Firm 2 is 3. The profit-maximizing price is

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Two firms engage in simultaneousmove quantity competition .pdf

  • 1.
    Two firms engagein simultaneous-move quantity competition (Cournot). The market demand is given as P = 220 - Q where Q = q1 + q2. Firm 1s total cost is given as TC1 = 30 q1. Firm 2s total cost is given as TC2 = 15 q2. 1. The profit-maximizing quantity of Firm 1 is 2. The profit-maximizing quantity of Firm 2 is 3. The profit-maximizing price is