Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Two firms compete in a homogeneous product market where the inverse demand function is P = 20 -5 Q (quantity is measured in millions).
PQ
b. Determine the current profits of the two firms.
Instruction:
Firm 1's profits: $ million
Firm 2's profits: $ million
c. What would each firm's current profits be if Firm 1 reduced its price to $10 while Firm 2 continued to charge $15?
Instruction:
Firm 1's profits: $ million
Firm 2's profits: $ million
