Re: oligopoly

Posted by dia on Jun 16, 2012; 2:08pm
URL: http://discussion-forum.276.s1.nabble.com/oligopoly-tp7577886p7577900.html

yeah q1=15, q2=15/2..so q=45/2 and p=15/2...

so profit of firm 1=15*15/2 and profit of firm 2=15*15/2*2 so profit1/profit2=2 how is it 1/2....and even if it is,it means that the leader firms profit is half dat of the follower..shouldnt the leader choose an output such that his market share is bigger?