Re: oligopoly

Posted by aditi5000 on Jun 16, 2012; 1:54pm
URL: http://discussion-forum.276.s1.nabble.com/oligopoly-tp7577886p7577895.html

p=30-q1-q2

MR firm 2 = 30 - 2q2-q1 = 0 so q2= 30-q1/2

profit= 30q1-q1^2-q2q1 = 30q1-q1^2-(30-q1/2)q1
dpi=30-2q1-30/2 + q1=0
q1=15 and q2= 15/2
so ratio of prof = 1/2