The inverse demand in a cournot dupoly is pa-bq1q2 and


The inverse demand in a Cournot dupoly is P=a-b(Q1+Q2) and costs are c1(Q1)=c1Q1,and C2(Q2)=c2Q2. The government has imposed a per unit tax of $t on each unit sold by each firm. The tax revue is ?

a. t times the total output of the 2 firms should ther be no sale tax

b. less than t times the total output of the 2 firms should there be no sale tax

c. greater than t times the total output of the 2 firms should there be no sale tax

d. none of the above.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: The inverse demand in a cournot dupoly is pa-bq1q2 and
Reference No:- TGS01134329

Expected delivery within 24 Hours