Question 1 Suppose the romaine lettuce industry is a Cournot duopoly with the following two firms: Amalgamated Romaine (a) and Best Romaine (b). The (inverse) market demand schedule is: p = 262 -0.5Q Amalgamated Romaine has the following cost structure: MCATC₁ = $6 Best Romaine has a different cost structure: MC₁ = ATC₁ = $8 Find the following in Cournot-Nash equilibrium. a. Output of Amalgamated Romaine = b. Output of Best Romaine = c. Cournot duopoly equilibrium price = $ units units 3 pts

Question 1 Suppose the romaine lettuce industry is a Cournot duopoly with the following two firms: Amalgamated Romaine (a) and Best Romaine (b). The (inverse) market demand schedule is: p = 262 -0.5Q Amalgamated Romaine has the following cost structure: MCATC₁ = $6 Best Romaine has a different cost structure: MC₁ = ATC₁ = $8 Find the following in Cournot-Nash equilibrium. a. Output of Amalgamated Romaine = b. Output of Best Romaine = c. Cournot duopoly equilibrium price = $ units units 3 pts

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 8E

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