Question: Suppose that the duopolists are unable to collude. How much profit will each earn when the market reaches a Nash equilibrium?
a. $2,700
b. $3,200
c. $3,500
d. $3,600
e. $7,200
The table shows the demand schedule for tickets to watch amateur baseball games in a medium-sized town. The city provides the ballparks, and the players play for free so the marginal cost of providing the games is zero. The city has authorized two companies to provide baseball games in two stadiums, and the public considers the games in each stadium to be equivalent.
Price Quantity
$12 0
11 200
10 400
9 600
8 800
7 1000
6 1200
5 1400
4 1600
3 1800
2 2000
1 2200
0 2400