Plain-text version
A duopoly market has demand P=120-0.6Q with Q=Q₁+Q₂, and cost functions C₁=6Q₁ and C₂=0.5Q₂², where P is unit price, Cᵢ is the cost function and Qᵢ is the output of firm i. The total output (Q) produced by the duopolists ignoring their interdependence is (*rounded off to two decimal places*).
Also written as: A duopoly market has demand P=120-0.6Q with Q=Q_1+Q_2, and cost functions C_1=6Q_1 and C_2=0.5Q_2^2, where P is unit price, C_i is the cost function and Q_i is the output of firm i. The total output (Q) produced by the duopolists ignoring their interdependence is (*rounded off to two decimal places*).
Monopolistic competition and oligopoly has come up 104 times in 7 exams since 2004.
Question from the IIT JAM 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.