Unformatted text preview: – Q but firms have asymmetric marginal costs i.e. c 1 and c 2 for Firm 1 and Firm 2 respectively. Find the Nash equilibrium. Find Equilibrium Total Output. If c 1 >c 2 show mathematically that Firm 1 produces more output than Firm 2. 3. Assume Bertrand duopoly with homogenous products. But firms have asymmetric marginal costs with c 1 >c 2 . What is the Nash Equilibrium? What is Equilibrium Market Price? If there were fixed costs to entry what would you expect to happen?...
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 Spring '11
 JULES
 Microeconomics, Game Theory, Nash, Reaction function, asymmetric marginal costs

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