Two firms are producing widgets. It costs the first firm q12dollars to produce q1widgets and the second firm 0.5q22dollars to produce q2widgets. If a total of q widgets are produced, consumers will pay 200 - q dollars for each widget. If the two manufacturers want to collude in an attempt to maximize the sum of their profits, how many widgets should each company produce? (The model for this type of problem is called a collusive duopoly model.)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here