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SOLVED: A duopoly faces a market demand of p = 180 - Q. Firm 1 has a constant marginal cost of MC1 = 40. Firm 2's constant marginal cost is MC2 =80. Calculate the output of each firm, market output, and price if there is (a) a collusive equilibrium or (b) a Cournot equilibrium.The collusive equilibrium occurs where q1 equals and q equals (Enter numeric responses using real numbers rounded to two decimal places)Market output isThe collusive equilibrium price is
SOLVED: A duopoly faces a market demand of p = 180 - Q. Firm 1 has …
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