How many machines would you recommend firm a to produce

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Reference no: EM13240038

Firm A = monopolist

Market demand: y = 150 - p
Total cost: C(y) = 30y

y = quantity of machines
p = price per machine

a) After being the monopolist for awhile, there's a new firm entering the market. Both firms will be choosing output simultaneously (new firm has the same cost function)

How many machines would you recommend firm A to produce? How many machines would you anticipate firm B will produce?

b) There's a mole in the company -> firm B will make output decision after seeing firm A's output. Give your new output decisions.

Reference no: EM13240038

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