If the firm a produces zero gallons of water per day firm

Reference no: EM13388646

Suppose duopolists in the market for spring water share a market demand curve given by P = 50 - 0.02Q, where P is the price per gallon and Q is thousands of gallons of water per day. The marginal cost of producing water is assumed to be zero (0) for both firms.

If firm A produces zero gallons of water per day, firm B's best response is producing:

Optimal output for Cournot duopolists moving simultaneously is

If one firm acts as a first mover, the second firm will produce

Reference no: EM13388646

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