Table 17-9Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost. PriceQuantityTotal Revenues700065100650060200120005530016500504002000045500225004060024000357002450030800240002590022500201000200001511001650010120012000513006500014000 Refer to Table 17-9. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?Group of answer choices$250$500$750$1000

We are going to use profit maximisation method and cournot duopoly game to solve thi game.

Answered: Table 17-9 Only two firms, Acme and…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.3P

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Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.

Price	Quantity	Total Revenues
70	0	0
65	100	6500
60	200	12000
55	300	16500
50	400	20000
45	500	22500
40	600	24000
35	700	24500
30	800	24000
25	900	22500
20	1000	20000
15	1100	16500
10	1200	12000
5	1300	6500
0	1400	0

Refer to Table 17-9. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits?

Group of answer choices

$250

$500

$750

$1000

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