Recent Posts • Latest Topics • Unanswered Questions

Two firms are competing in a duopoly and are trying to decide which price to set. The two prices und

Loraine

wrote...

Go to Answer

Posts: 4563

Rep:

9 years ago

Two firms are competing in a duopoly and are trying to decide which price to set. The two prices und

Two firms are competing in a duopoly and are trying to decide which price to set. The two prices under consideration are a high monopoly price and a low competitive level. If both seller A and seller B chose the monopoly price, each will earn $20 million of economic profit. However, if one picks the monopoly price while the other picks the competitive price, the high-price firm will lose $1 million while the low-price firm will earn $32 million. If both sell at the competitive level, they both earn a normal profit. Complete the payoff matrix below and determine the Nash equilibrium.

Textbook

Essential Foundations of Economics

Edition: 7^th

Authors: Bade, Parkin

Read 255 times

1 Reply

Report

Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.

Replies

Answer verified by a subject expert

VincenzoD

wrote...

Related Topics

Loraine Author

wrote...

9 years ago

Thanks for your help!!

IvanaVR

wrote...

Yesterday

Helped a lot

Goku935

wrote...

2 hours ago

Brilliant ツ

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

774 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

351

394

113

Your Opinion

Previous poll results: Do you trust social media networks with protecting your privacy?

Courses by Biology Forums

Strange Ingredients Lurking in Doritos Chips

The Toxic Skin and Fungi Defense

It's sore throat season, why does my mucus have red spots?

Bonobos, Chimpanzees, and the 98% DNA Link

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.