Answer to Question #98001 in Microeconomics for Tuan Nguyen

Question #98001
Two firms producing differentiated products compete by simultaneously choosing prices. Demand for firm A’s product is given by: qA= 30 - 5pA + 2pB. Firm B’s demand is qB= 30 - 5pB+ 2A. For each firm the marginal cost of producing a unit of the good is 6, C(qi) = 6qi.
Suppose instead that the firms were to collude with the objective of maximizing their combined profits. What price will each firm set? What profits will each firm earn
1
Expert's answer
2019-11-06T10:26:09-0500
Dear Tuan Nguyen, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
APPROVED BY CLIENTS