Find cournot equilibrium price and quanitiy

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Reference no: EM131094427

An electricity industry contains two generating firms, one of which has marginal cost= $2.50 and the other of $1.50; the demand curve is Quanity=40-4*price. Quanities are in MWH and price are in $/Mwh. Very low production cost!

A. Find cournot Equilibrium price and quanitiy.

B. Answer the same question as in part a if the firms behave according to the assumptions of the bertrand model.

Reference no: EM131094427

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Find cournot equilibrium price and quanitiy : An electricity industry contains two generating firms, one of which has marginal cost= $2.50 and the other of $1.50; the demand curve is Quanity=40-4*price. Quanities are in MWH and price are in $/Mwh. Very low production cost! Find cournot Equilibri..

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