Two firms compete as a duopoly. The demand they face is P = 100 - 3Q. The cost function for each firm is C(Q) = 40.
A. Determine output and profits for each firm in a Cournot oligopoly.
B. If firms collude, determine output and profit for each firm.
C. If firm 1 cheats, determine output and profit for each firm.
D. Graph the reaction functions and identify the points from parts A, B, and C.
2. Corrected_text: Two firms compete as a duopoly. The demand they face is P = 80 - 2Q. The cost function for firm 1 is C(Q) = 4Q and for firm 2 is C(Q) = 3Q.
A. Determine output and profits for each firm in a Cournot oligopoly.
B. Determine output and profits for each firm in a Stackelberg oligopoly.
Title_with_topic:
1. Analysis of Output and Profits in a Duopoly: Cournot Oligopoly and Collusion
2. Comparison of Output and Profits in a Duopoly: Cournot Oligopoly and Stackelberg Oligopoly