Suppose there are two firms,Boors and Cudweiser,each selling identical-tasting nonalcoholic beer.Consumers of this beer have no brand loyalty so market demand can be expressed as .Boors operates with out of date technology and has constant cost of (MC = AC)$4 per unit where as Cudweiser has constant cost of $2 per unit.Assuming the firms behave as Cournot competitors,in the Nash equilibrium,Cudweiser will produce

Question

Suppose there are two firms,Boors and Cudweiser,each selling identical-tasting nonalcoholic beer.Consumers of this beer have no brand loyalty so market demand can be expressed as  .Boors operates with out of date technology and has constant cost of (MC = AC)$4 per unit where as Cudweiser has constant cost of $2 per unit.Assuming the firms behave as Cournot competitors,in the Nash equilibrium,Cudweiser will produce

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The Answer of Suppose there are two firms,Boors and Cudweiser,each selling identical-tasting nonalcoholic beer.Consumers of this beer have no brand loyalty so market demand can be expressed as  .Boors operates with out of date technology and has constant cost of (MC = AC)$4 per unit where as Cudweiser has constant cost of $2 per unit.Assuming the firms behave as Cournot competitors,in the Nash equilibrium,Cudweiser will produce

Suppose There Are Two Firms,Boors and Cudweiser,each Selling Identical-Tasting Nonalcoholic