Suppose in a duopoly, Firm 2 sets its output level after Firm 1, market demand is P=50 - Q and marginal cost is zero. Firm 2s total revenue function is ____________________, its reaction curve is ________________ and its profit maximizing level of output is ________________________..

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     50Q2 - Q1Q2 - Q22; 50 - Q1 - 2(Q2); 12.5
      50Q - Q2; 25-1/2(Q1); 12.5
      50Q2 - Q1Q2 - Q22; 25-1/2(Q1); 12.5
      50Q2 - Q1Q2 - Q22; 25-1/2(Q1); 25
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
50Q2 - Q1Q2 - Q22; 25-1/2(Q1); 12.5
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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