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Functions equal the square of its output

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Oligopoly problem - Let the profit and cost functions be p(yT) = 60 - yT, Each firms cost functions equal the square of its output.

  • Identify the reaction functions for Firm 1 and Firm 2
  • Identify the profit level for each firm
  • Describe in brief detail what would happen in the case of a) Collusion, and b)Stackelberg games (where Firm 1 is the leader)

Reference no: EM131061743

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