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Author Question: Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. ... (Read 199 times)

gbarreiro

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Question 1

Mergers often increase profit by
◦ producing economies of scale.
◦ producing economies of scope.
◦ increasing efficiency of the firm.
◦ All of these.

Question 2

Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is
◦ q1 = (a - bq2)/2b.
◦ q1 = (a - 2bq2)/2b.
◦ q1 = a/b.
◦ q1 = a/2b.


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Marked as best answer by gbarreiro on Mar 14, 2021

spencer.martell

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gbarreiro

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Reply 2 on: Mar 14, 2021
YES! Correct, THANKS for helping me on my review


marict

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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