Consider a single country and a single good. The demand curve for this good is given by QD = 144 - 4P. There are two firms serving the market: Firm A and Firm B, where Firm A has a marginal cost of...


Consider a single country and a single good. The demand curve for this good is given by QD = 144 - 4P. There
are two firms serving the market: Firm A and Firm B, where Firm A has a marginal cost of $20 and Firm B has
a marginal cost of $16. There are no fixed costs incurred by either firm.



Firm A produces 16 units and firm B produces 32 units.



The equilibrium price is $24.



Total Profit for Firm A = $64



Total Profit for Firm B = $256




Assume that these firms compete in Cournot fashion.




What is the consumer surplus? Show your work.



Jun 08, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here