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Two firms intel and amd in the cpu market have combined demand given q = 100-2p. their total costs are given by tc intel = 4 q intel + 2 q intel^2 and tc amd = 4 q amd + 2 q amd^2. if they cannot successfully collude and instead produce where the market price equals marginal cost, the market price will be

Respuesta :

The price based on the information is 34.

How to calculate the price?

From the information given, the firms intel and amd in the cpu market have combined demand given q = 100-2p.

Therefore, the first equation will be:

100 & (Qa + Qi) = 4 + 4Qi

96 = 5Qi + Qa

The second equation will be:

96 = 5Qa + Qi

Solving both equations:

Qi = 16

Therefore, Qa will be:

= 96 - 5(16)

= 96 - 80

= 16

Therefore, the price will be:

= 100 - (16+16)/2

= 68/2

= 34

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