6390
Exercise 59.2 (Cournot’s duopoly game with linear inverse demandand a
xed cost) Find the Nash equilibrium of Cournot’s game when thereare two rms, the
inverse demand function is given by equation (56.2), and the costfunction of each rm
i is given by
where c > 0, f > 0, and c < a. (Note that the xed cost f aects only the rm’s decision
of whether to operate; it does not a ect the output a rm wishes toproduce if it wishes
to operate.)
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now