Hale's One Stop Gas and Auto Service competes with Murray's Gas and Service Mart.The local demand is given by: P = 2.50 - 0.01Q.Hale's marginal cost function is:
MC_H(qH) = 0.35_qH.Murray's marginal cost function is: MC_M_(q_M₎ = 0.30_q_M.
Given the demand relationship above,Hale's marginal revenue function is: Determine Hale's reaction function.Murray's marginal revenue function is: Determine Murray's reaction function.What is the Cournot solution?

Question

Hale's One Stop Gas and Auto Service competes with Murray's Gas and Service Mart.The local demand is given by: P = 2.50 - 0.01Q.Hale's marginal cost function is:
MC_H(qH) = 0.35_qH.Murray's marginal cost function is: MC_M_(q_M₎ = 0.30_q_M.
Given the demand relationship above,Hale's marginal revenue function is:

Determine Hale's reaction function.Murray's marginal revenue function is:

Determine Murray's reaction function.What is the Cournot solution?

Quizplus · Accepted Answer

The Answer of Hale's One Stop Gas and Auto Service competes with Murray's Gas and Service Mart.The local demand is given by: P = 2.50 - 0.01Q.Hale's marginal cost function is: MC_H(qH) = 0.35_qH.Murray's marginal cost function is: MC_M_(q_M₎ = 0.30_q_M. Given the demand relationship above,Hale's marginal revenue function is: Determine Hale's reaction function.Murray's marginal revenue function is: Determine Murray's reaction function.What is the Cournot solution?

Hale's One Stop Gas and Auto Service Competes with Murray's