Consider a noncollusive duopoly model with both firms supplying bottled drinking water. The marginal cost for each firm is $1.50. The market demand is shown by the figure on the right. Let us assume that the two firms supplying bottled drinking water are Firm A and Firm B. The price charged by Firm A is denoted as PA and the price charged by Firm B is denoted as Pg. Find the demand functions for each of the firms. If PA S$7, then demand for Firm A's bottled drinking water is: thousand if PA PB thousand if PA PB thousand if PA PB If PB $7, then demand for Firm B's bottled drinking water is: thousand if PB PA thousand if PB PA thousand if PB>PA (Round your responses to two decimal places.) 10- 9 8- 7- 6- 4- 3- 2- 1- 0.5 1 Demand 15 2 25 3 3.5 4 4.5 5 Quantity (in thousands)

Consider a noncollusive duopoly model with both firms supplying bottled drinking water. The marginal cost for each firm is $1.50. The market demand is shown by the figure on the right. Let us assume that the two firms supplying bottled drinking water are Firm A and Firm B. The price charged by Firm A is denoted as PA and the price charged by Firm B is denoted as Pg. Find the demand functions for each of the firms. If PA S$7, then demand for Firm A's bottled drinking water is: thousand if PA PB thousand if PA PB thousand if PA PB If PB $7, then demand for Firm B's bottled drinking water is: thousand if PB PA thousand if PB PA thousand if PB>PA (Round your responses to two decimal places.) 10- 9 8- 7- 6- 4- 3- 2- 1- 0.5 1 Demand 15 2 25 3 3.5 4 4.5 5 Quantity (in thousands)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.3P

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