Answer to Question #284851 in Microeconomics for Shek Ahmed

Question

There are two toast bakers in City A: Anderson and Carlson. They make the same toast and nobody can tell the difference. Th e demand curve of the toast in City A is P =6-0.01 Q, Q is the demand in each day and Q = Q _A + Q _C . The firms’ cost functions are C A (Q _A )= 2 + Q _A and C _C (Q _C ) = 1 + 2Q _C

a. What is each firm’s equilibrium output and profit if they behave noncooperatively? Use the Cournot model. Draw the firms’ reaction curves and show the equilibrium

Answer 1

Dear Shek Ahmed, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order