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In: Economics

4) Assume, A and B are the only firms which are operating in an oligopolistic market....

4) Assume, A and B are the only firms which are operating in an oligopolistic market. The
equation of the market demand curve is, Q=600-2P, the total cost function of the firm A
is, TCA=0.5and the total cost function of the firm B is, TCB=120qB.
a) Find the market price and quantities if both firms behave as Cournot duopolists.
b) Find the market price and quantities if the firm A behaves as the Stackelberg leader
and firm B behaves as the Stackelberg follower.

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Rahul Sunny answered 1 year ago
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