Question:
Consider a duopoly market where Firm 1 and Firm 2 produce differentiated products such that the demand function of each firm is given by :
q1(p1, p2) = 18 - p1 + p2
q2(p1, p2) = 18 + p1 - p2
Here, q1 and q2 are the outputs produced by Firm 1 and Firm 2, respectively, and p1 and p2 are the corresponding per unit prices.
Cost of production for the ith firm is given by Ci(qi) = 2qi ∀ i = 1,2
The firms compete in prices. The price set by Firm 2 such that the market is in Nash equilibrium will be ________ (in integer).
Consider a duopoly market where Firm 1 and Firm 2 produce differentiated products such that the demand function of each firm is given by :
q1(p1, p2) = 18 - p1 + p2
q2(p1, p2) = 18 + p1 - p2
Here, q1 and q2 are the outputs produced by Firm 1 and Firm 2, respectively, and p1 and p2 are the corresponding per unit prices.
Cost of production for the ith firm is given by Ci(qi) = 2qi ∀ i = 1,2
The firms compete in prices. The price set by Firm 2 such that the market is in Nash equilibrium will be ________ (in integer).
q1(p1, p2) = 18 - p1 + p2
q2(p1, p2) = 18 + p1 - p2
Here, q1 and q2 are the outputs produced by Firm 1 and Firm 2, respectively, and p1 and p2 are the corresponding per unit prices.
Cost of production for the ith firm is given by Ci(qi) = 2qi ∀ i = 1,2
The firms compete in prices. The price set by Firm 2 such that the market is in Nash equilibrium will be ________ (in integer).
Updated On: Jul 18, 2024
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Correct Answer: 20
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The correct answer is 20.
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