practice2.pdf - 1 Consider the market for tomatoes which...

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1. Consider the market for tomatoes, which are considered to be homogenous products. There are only two producers in the market. The cost functions of producer 1 and producer 2 are given by TC 1 ( q 1 ) = q 1 and TC 2 ( q 2 ) = 4 q 2 ; respectively. Let the demand be p = 10 ° Q: Find the pro°t level of each producer in a Cournot-Nash equilibrium. 2. Consider a Cournot game with homogenous products. There are N °rms in the market, and N is °xed. The demand function is given by
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