Let duopolist I, producing a differentiated product, face an inverse demand function given by p1 = 100 – 2q1 – q2 and have the cost function C1 = 2.5q1^2. Assume that duopolist II wishes to maintain a market share of 1/3. Find the optimal price, output, and profit for duopolist I.Find the output of duopolist II.
Let duopolist I, producing a differentiated product, face an inv…
May 20, 2023
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