Consider the Cournot duopoly model where the inverse demand is P(Q) = a – Q but firms have asymmetric marginal costs: c1 for firm 1 and c2 for firm 2.
What is the Nash equilibrium if 0 < ci < a/2 for each firm?
What if c1 < c2 < a, but 2c2 > a + c1?
Get Answers For Free
Most questions answered within 1 hours.