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Serggg [28]
2 years ago
14

Two firms (1 and 2) compete in a homogeneous goods market, where the firms produce exactly the same good. The firms simultaneous

ly and independently select quantities to produce. The quantity selected by firm i is denoted q, and must be greater than or equal to zero, for i - 1,2. The market price is given by p-2 - q1 -q2. For simplicity, as sume that the cost to firm i of producing any quantity is zero. Further, assume that each firm's payoff is defined as its profit. That is, firm i's payoff is pqi, where j denotes firm i's opponent in the game.
Requried:
Describe the normal form of this game by expressing the strategy spaces and writing the payoffs as functions of the strategies.
Business
1 answer:
ella [17]2 years ago
4 0

Answer:

m

Explanation:

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