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Constant and identical for both firms

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Reference no: EM131285988

Consider a market with the following demand curve: P = 400-2Q

Two firms are competing A & B: With MCa = Mcb = 112.

Suppose marginal cost are constant and identical for both firms.

We assume: P > AVC.

  • Find DWL Under Monopoly with firm A as the Monopolist:
  • Find the DWL under Cournot Duopoly:
  • Find DWL under Stackelberg Duopoly:

Reference no: EM131285988

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