Consider a market with the following demand curve p 400-2q


Consider a market with the following demand curve: P = 400-2Q

Two firms are competing A & B: With MCa = Mcb = 112.

Suppose marginal cost are constant and identical for both firms.

We assume: P > AVC.

  • Find DWL Under Monopoly with firm A as the Monopolist:
  • Find the DWL under Cournot Duopoly:
  • Find DWL under Stackelberg Duopoly:

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Macroeconomics: Consider a market with the following demand curve p 400-2q
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