The demand function in a duopoly market is, where P is the price and Q is the total quantity demanded. Both companies have the same constant marginal cost, MC = 25. What is the deadweight loss if both firms are profit maximizing and they are not allowed to cooperate?

The demand function in a duopoly market is, where P is the price and Q is the total quantity demanded. Both companies have the same constant marginal cost, MC = 25. What is the deadweight loss if both firms are profit maximizing and they are not allowed to cooperate?

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 8CQ

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The demand function in a duopoly market is, where P is the price and Q is the total
quantity demanded. Both companies have the same constant marginal cost, MC = 25.
What is the deadweight loss if both firms are profit maximizing and they are not allowed
to cooperate?

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