HWK10 - ECON 2010 HWK 10 P= C_H C_I Q= 150 = 200 = 300 q_H...

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ECON 2010 HWK 10 P = 150 – Q C_H = 200 + 2*q_H + q_H^2 C_I = 300 + 2*q_I + 2*q_I^2 Q = q_H + q_I pi_H = TR_H – TC_H = (150 – q_H – q_I)*q_H – (200 + 2*q_H + q_H^2) dpi_H/dq_H = -4*q_H – q_I + 148 = 0 q_H = -0.25*q_I + 37 // Reaction Function of Hannifin Co pi_I = TR_I – TC_I = (150 – q_H – q_I)*q_I – (300 + 2*q_I + 2*q_I^2) dpi_I/dq_I = -6*q_I – q_H + 148 = 0 q_I = (-q_H + 148)/6 // Reaction Function of Ingersoll Corp // Solving by substitution q_I = (-[-0.25*q_I + 37] + 148)/6
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This note was uploaded on 10/22/2011 for the course ECON 2010 taught by Professor Devkota during the Spring '08 term at Rensselaer Polytechnic Institute.

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