# Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600...

## Question:

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior.

## Oligopoly Market:

The oligopoly market has a different side to showcase, and the operation level changes as the type of market changes. The firms collude to take advantage market. There is the market where the firm operates at a socially efficient level, known as the Bertrand model.

## Answer and Explanation: 1

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View this answerThe Cournot model equilibrium is calculated below:

{eq}\begin{align*} Q &= {Q_1} + {Q_2}\\ P &= 600 - 3Q\\ T{R_1} &= 600{Q_1} - 3Q_1^2 -...

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Chapter 4 / Lesson 16Learn what an oligopoly is and its market effects, and view examples of oligopolies. Understand non-price competition and how oligopolies affect price competition.

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