Firm that maximizes joint profits

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Reference no: EM138231

Q. The inverse market demand for mineral water is: P=200-10Q, where Q is the total market output and P stands for price of market. Two firms A and B have complete control of the supply of mineral water and both have zero costs.
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find an identical output for each firm that maximizes joint profits.

Continuing with the previous problem suppose that each firm can choose only two outputs - the ones from parts a and b in question 2. Denote these outputs qa and qb. Compute the payoff/profit matrix showing the four possible outcomes

Reference no: EM138231

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