Reference no: EM131950130

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior.

Instruction: Do not round intermediate calculations. Round final answers to 2 decimal places for Cournot values.

Cournot output for each firm:

Cournot profits for each firm: $

Stackelberg leader output:

Stackelberg follower output:

Stackelberg leader profits: $

Stackelberg follower profits: $

Bertrand market-level output:

Bertrand profits for each firm: $

Collusive market-level output:

Collusive industry-level profits: $