Market demand- p 60-q where q is the total amount of the


Suppose you are given the following information:

Market demand- P= 60-q where Q is the total amount of the good supplied in the market-

A. Assume that there are two firms in this market Firm A and Firm B. Furthermore, Firm A's total cost function is given by Ca (qa) = 10 + Q^2 a and firm B's total cost function is given by Cb(qb) = 10 + q^2 b. Suppose that the two firms decide to collude( split output and production evenly) and work as a monopolist. Fund the market price, output, and profits of each firm. Explain

B. Explain why this is not a Nash equilibrium in this market under quantity (Cournot) competition.

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Business Economics: Market demand- p 60-q where q is the total amount of the
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