Solution 1 An incumbent firm Firm 1 faces a potencial entrant Firm2 that has a lower marginal cost The market inverse demand function is p 120 Q1 Q2
Solution An incumbent firm Firm faces a potencial entrant Firm that has a lower marginal cost The market inverse demand
Solution An incumbent firm Firm faces a potencial entrant Firm that has a lower marginal
faces a potencial entrant Firm that has a lower marginal cost The market inverse demand function is p Q Q
Solution An incumbent firm Firm faces a potencial entrant Firm that has
a lower marginal cost The market inverse demand function is p Q Q
Solution An incumbent firm Firm faces a potencial entrant Firm
Solution An incumbent firm Firm
(Solution) 1 An incumbent firm, Firm 1,faces a potencial entrant, Firm2,that has a lower marginal cost.The market inverse demand function is p= 120 -Q1-Q2.

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5.1 An incumbent firm, Firm 1,faces  a potencial entrant, Firm2,that has a lower marginal cost.The market inverse demand function is p= 120 –Q1-Q2.Firm 1 has a constant marginal cost of $20,while firm 2 is $10 and they have no fixed cost.1.-What are the nash-cournot  equilibrium price, quantities,and profits without government intervention? 2.-To block entry,the incumbent appeals to the government to require that the entrant incur extra costs. What happens to the nash cournot equilibrium if the legal requirement causes the marginal cost of the second firm to rise to that of the first firm,$20?

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