Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 123 - 3Q. The total cost function f
1 answer:
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
=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
Read more about the price
#SPJ1
You might be interested in
Answer:
The effective annual rate of interest is "10.38%".
Explanation:
The given values are:
Nominal annual interest rate,
Q = 10%
i.e.,
= 0.10
Quarterly compounding,
q = 4
Now,
The effective annual rate of interest will be:
=
On substituting the given values in the above formula, we get
=
=
=
=
=
On converting it into percentage, we get
= %