Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 123 - 3Q. The total cost function f

Question

1 year ago

5

or each firm is TC(Q) = 3Q. The price charged in this market will be

1 answer:

Varvara68 [4.7K] · Answer 1 · 2023-12-11T16:48:10+03:00

The price changed in this market will be mathematically given as

P=93

<h3>What is the price change in this market?</h3>

P = 123 - 3Q

Generally, the equation for the statement is mathematically given as

P = 123 - 3Q

Therefore

$\frac{d \pi}{ d \Q1}$ =123-6Q1-30Q2-3=0

Where

Q1=120-3Q2/6

Hence

Q1=120-3(120-3Q1/6)/6

Q1=13.333

In conclusion,

P = 123 - 3(2*13.333)

P=93