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Consider two firms facing the demand curve P-90-5Q, 17 where Q Q1+Q2. The firms cost functions are C(Q1) 10+501 and C2 (Q2) 5 + 10Q2 Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce 8.5 units of output, of which Firm 1 will produce 8.5 units and Firm 2 will produce 8 9 10 11 12 13 14 15 16 17 18 Firm 2s output 0 1 2 3 4 0 units. (Enter a numeric response using a real number rounded to two decimal places.) What is each firms equilibrium output and profit if they behave noncooperatively? Use the Cournot model
What is each firms equilibrium output and profit if they behave noncooperatively? Use the Cournot model 17 If the firms compete, then Firm 1 will produce 6 units of output and Firm 2 will produce 5 units of output Draw the firms reaction curves and show the equilibrium 14 12 To do this, draw Firm 1s reaction curve (RC1) and Firm 2s reaction curve (RC2) in the figure to the right using the line drawing tool. Attach the appropriate labels Then, indicate the Cournot Equilibrium (Equilibrium) using the point drawing tool. Attach the provided label If you are not prompted for a label, then you have used the wrong drawing tool 9 10 11 12 13 14 15 16 17 18 Firm 2s output How much should Firm 1 be willing to pay to purchase Firm 2 if collusion is illegal but a takeover is not? Firm 1 would be willing to pay sto purchase Firm 2 (so that Firm 2 does not to produce).
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ニ(90-5%)9,-542-10-5% lo 2 80-59- BR 知· 18 16 14 12 16 CN CN = g10-10-30: 140 - 115-5-50120 6 BR2(%) 8.5 nowyAm puodu ces, toen Q:8-5, p.9o-5@f-4억-5

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