Two identical firms have constant (and equal) marginal cost of MC = $30 and no fixed cost. They face market demand of P = 90 − 0.5Q. Each firm can either produce the cartel output (half the monopoly output), or produce the Cournot output. a. (4 pts.) Fill out the payoffs in the table below. (Payoff matrix)
Two identical firms have constant (and equal) marginal cost of MC = $30 and no fixed cost. They face
market demand of P = 90 − 0.5Q. Each firm can either produce the cartel output (half the monopoly output), or produce the Cournot output. a. (4 pts.) Fill out the payoffs in the table below. (Payoff matrix)
b. (2 pts.) If the firms cannot coordinate and must choose their outputs independently, what will
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The post Two identical firms have constant (and equal) marginal cost of MC = $30 and no fixed cost. They face market demand of P = 90 − 0.5Q. Each firm can either produce the cartel output (half the monopoly output), or produce the Cournot output. a. (4 pts.) Fill out the payoffs in the table below. (Payoff matrix) appeared first on Superb Professors.