Business, 31.05.2020 03:59 lexigarwood
Consider two countries, A and B, whose respective industries produce goods q_A and q_B. Total world output of the good is given by Q = q_A + q_B. There is a world demand given by P = 98 - Q. Suppose that the cost function for country A is given by c_A(q_A) = 7q_A while the cost function in country B is given by c_B(q_B) = 4q_B. The production of the good generates greenhouse gas emissions which cause global climate change. Total world emissions are 0.5 per unit of good, such that total world emissions are 0.5Q. If the two countries' industries compete in a Cournot fashion, what will the total world emissions be?
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Consider two countries, A and B, whose respective industries produce goods q_A and q_B. Total world...
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