Homework Help

In a market there are 2 companies: C1 and C2, who are selling the same goods and...

user profile pic

raconico | Student, Undergraduate | eNoter

Posted May 11, 2013 at 6:40 PM via web

dislike 0 like

In a market there are 2 companies: C1 and C2, who are selling the same goods and competing on prices. The demand function of the good is Q=3000-100P, and the minimum fraction of price is 0.01$

a) If the companies have the same cost function C(q)=5q, what will be the equilibrium point? And the quantity sold and the profit of each company? Is the equilibrium efficient?

b) If the company C1 has C(q)=5q and C2 has C(q)=6q, how will your answer change?

0 Answers | Be the first to answer

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes