Answer the following:
(a)Assume two firms face a market demand curve of P = a - bQ,where a and b are positive constants,and marginal cost equals c for both firms.Fill in the following table,identify the respective points of equilibrium on the graph below,and explain the relevant characteristics of each model as you work through them.

b)Following your answers above,explain intuitively how output and price vary by market structure.

Question

Answer the following:
(a)Assume two firms face a market demand curve of P = a - bQ,where a and b are positive constants,and marginal cost equals c for both firms.Fill in the following table,identify the respective points of equilibrium on the graph below,and explain the relevant characteristics of each model as you work through them.
  
b)Following your answers above,explain intuitively how output and price vary by market structure.

Quizplus · Accepted Answer

The Answer of Answer the following:
(a)Assume two firms face a market demand curve of P = a - bQ,where a and b are positive constants,and marginal cost equals c for both firms.Fill in the following table,identify the respective points of equilibrium on the graph below,and explain the relevant characteristics of each model as you work through them.
  
b)Following your answers above,explain intuitively how output and price vary by market structure.

Answer the Following