Two identical firms have mc 1 no fc and face a market


Two identical firms have MC = $1 (no FC) and face a market demand of:   P = 6 - Q.

a)Cournot Duopoly:  Each firm chooses a discrete quantity: 0, 1, 2, or 3.  Present the game in matrix form, and find its pure strategy Nash equilibria.  Are there any dominant or dominated strategies for either player?

b)Bertrand Duopoly:  Each firm can choose any price.  What is/are the Nash equilibrium/a?

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Macroeconomics: Two identical firms have mc 1 no fc and face a market
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