Economics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 24

Table 15P-1 shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $5,000 of fixed costs per month. There are no marginal costs.
a. What is the monthly profit for each duopolist if they evenly split the quantity a monopolist would produce?
b. What is the monthly profit for duopolist A and duopolist B if duopolist A decides to increase production by 200 units?