Price Leadership Duopoly
15.8 هزار بار بازدید -
9 سال پیش
-
This video shows you how
This video shows you how to solve for the equilibrium price and quantity for both firms in a price leadership duopoly.
Demand functions for the firms:
Qa = 100 - 2Pa + 3Pb
Qb = 120 - 2Pb + 2Pa
The marginal cost of production for both firms is $5 per unit. Since this is price leadership, we will use backwards induction to solve. (Solutions below)
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Solutions
Pa = $200
Pb = $132
Qa = 97.5
Pa = 255
Demand functions for the firms:
Qa = 100 - 2Pa + 3Pb
Qb = 120 - 2Pb + 2Pa
The marginal cost of production for both firms is $5 per unit. Since this is price leadership, we will use backwards induction to solve. (Solutions below)
.
.
.
.
.
Solutions
Pa = $200
Pb = $132
Qa = 97.5
Pa = 255
9 سال پیش
در تاریخ 1394/01/22 منتشر شده
است.
15,890
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