An industry contains two firms (A & B), firm A has marginal cost function MCA= 3qA, firm B has marginal cost function MCB= qB. The inverse demand function for the firms’ output is P = 80 – 0.5Q, where Q is the total output. Answer the following questions: 1.the Cournot response functions are:

qA=40 - 0.25qB ; And qB=20 - 0.125qA

qA=20 - 0.125qB ; And qB=40 - 0.25qA

qA= 22.85 - 0.14qB ; And qB=53.33 - 0.33qA

qA=53.33 - 0.33qB ; And qB=22.85 - 0.14qA

2.the Cournot outputs for the two firms (A & B) are:

qA=36.13 and qB=15.46

qA=15.46 and qB=36.13

qA=26.30 and qB=25.52

qA=25.52 and qB=26.30

3.if firm A is a leader firm, the Stackelberg solution will be:

qA=15.34 and qB=37.23

qA=16 and qB=36

qA=37.23 and qB=15.34

qA=36 and qB=16

if you explain the the question more correctly i might be able to answer this better

step-by-step explanation:

step-by-step explanation:

because it just is

system of linear equation

step-by-step explanation:

as given in the data

a= 20 , b= -12

let us suppose that it is a straight line equation

now we know the formula for the system of linear equation

b= ma + c )

here m is slope of a straight line which is equal to formula

m=   (ii)

and here c is a constant

now putting the value of a and b in equation (ii)

m=

m=

putting the value of a,b and m in equation (i) gives us

-12 = + c

-12=-12 + c

adding 12 to both sides

-12 +12 = -12 +12 +c

0 =c

or c=0

as the value of the constant is zero which gives us that it is a linear equation and this order pair satisfies the system of linear equations.

the ratios are reciprocals im positive

step-by-step explanation:

they are all positive numbers so it wouldn't be the other ones