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Suppose that Grinch and Grubb go into the wine business in a small country where wine is difficult to grow. The demand for wine is given by p = $480 β 0.2Q where p is the price and Q is the total quantity sold. The industry consists of just the two Cournot duopolists, Grinch and Grubb. Imports are prohibited. Grinch has constant marginal costs of $ 60 and Grubb has marginal costs of $45. How much is Grinch's output in equilibrium?
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Suppose that Grinch and Grubb go into the wine business in a small country where wine is difficult t...
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