The demand faced by Grenada is P 100 q P q G q G q G 60 05q Gii The

The demand faced by grenada is p 100 q p q g q g q g

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0.5 q G G
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162 Part 3 Markets and Prices = MC 20 = $40 $800 $400 14. Consider the Cournot-Stackelberg competing islands of Penang and Grenada discussed in the previous problem. What will happen to Grenada’s and Penang’s output if:a. Grenada’s cost of production decreases to $16, while Penang’s stays at $20. Explain.b. Penang’s cost of production decreases to $16, while Grenada’s stays at $20. Explain. = MC q P = MC G 0.5 q G = MC q P = 18 = MC P = MC G
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Imperfect Competition Chapter 11 163 0.5 q G = MC = 23
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