Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.

-Refer to Table 17-9.How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?
A) $250
B) $500
C) $750
D) $1000

Question

Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
 
-Refer to Table 17-9.How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?
A) $250 
B) $500 
C) $750 
D) $1000

Quizplus · Accepted Answer

The Answer of Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
 
-Refer to Table 17-9.How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?
A) $250 
B) $500 
C) $750 
D) $1000

Table 17-9 Only Two Firms, Acme and Pinnacle, Sell a Particular Product