Suppose that the widget industry consists of three firms. Their profit functions are below: D1 =...

Suppose that the widget industry consists of three firms. Their profit functions are below:

D1 = (P1 - 10)(125 – 9P1 + 3P2 +2P3)
D2 = (P2 – 10)(150 – 10P2 + 2P1 + 2P3)
D3 = (P3 – 9)(110 – 8P3 + 2P1 + 2P2)

Calculate the equilibrium prices numerically.

Expert Solution

Rahul Sunny answered 2 years ago

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