Cournot duopoly.

Consider a homogeneous-product duopoly where each firm initially produces at a constant marginal cost of $200 and there are no fixed costs. Determine what would happen to each firm’s equilibrium output and profits if firm 2’s marginal cost increased to $210 but firm 1’s marginal cost remained constant at $200 in each of the following settings:

a. Cournot duopoly.

b. Sweezy oligopoly

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now