Help with a question...
- From: "Raquel" <raquel_rodriguezus@xxxxxxxxx>
- Date: 25 May 2006 07:51:10 -0700
My first mail to the group and if this is not the right place for this,
please let me know a better one. A colleague of mine posed this
question to me and I have no clue.
Any firm that wants to produce soma needs to build an integer number of
plants: 0,1,2. Each plant costs the firm 3 dollars, with each plant
producing a single unit of SOMA. Market price p for one unit of soma is
5-(Q1+Q2) where Q1 is the #plants by firm 1 and Q2 is #plants by firm
2. Suppose firm 1 builds before firm 2. How many plants should firm 1
build and what will firm 2's reaction be.
I am not really sure how to handle this question.
.
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