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What is the nash equilibrium in prices

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Reference no: EM132445039

Consider a market with two firms and a market inverse demand:p= 90 - q , where q is the total market outputFirms have different marginal and fixed costs:Firm 1: c1 = 50 and FC1 =0Firm 2: c2 = 0 and FC2 = 50Assume the two firms choose prices simultaneously:

(1) What is the Nash Equilibrium in prices? Justify.

(2) How many units of output will each firm produce at the NE?

Reference no: EM132445039

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