Wednesday, January 23, 2013
Alzheimer's problem of the day.
Two firms face the same demand curve, P = 120 -Q*, but have different cost functions. Firm 1 TC(y) = 30y. Firm 2 TC (y) = y^2. Find the equilibrium, Price, and quantity each firm makes.
Rival 1, makes 34.28. Rival 2, makes 21.4. P = $64.32.
I loved this problem found on the internet.
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