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In: Economics

Tim Corporation and Sandra Inc. are sole producers of cement in Carnegistan. They each have marginal...

Tim Corporation and Sandra Inc. are sole producers of cement in Carnegistan. They each have marginal cost of 10 dollars per ton and produce 30 million tons of cement annually. The initial price in the market is 30 per tons.

a) Should you model this as Cournot or Bertrand competition?

b) What is the (linear) demand function and profit for each firm in the market?

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Expert Solution

Rahul Sunny answered 2 years ago
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