Question

Ben manufactures a specialized type of engine, of which Sam is the only purchaser. He uses it to build cars, for which the final inverse demand is given by:p= 20−q. The constant unit cost of an engine is $4 and the cost of assembling the final product, but for the engine, is $2. What is the difference in the final price of the heavy equipment often and Sam chooses prices non cooperatively (two firms), rather than jointly (one firm). That is, subtract the jointly determined price from the non- cooperatively determined price

Answer 1

Explanation:

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