ci = 30Qi, where Qi for i = {A,B} is output produced by each firm.
market demand is given by
p= 210 - 1.5 Q, where Q = QA + QB
find out cournot equilibrium
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The market demand is P=100-1.5Q, where Q=qa+qb and the firm's cost structure is such that MCa=ACa=20 and MCb=ACb=20. a) Solve for the Cournot reaction functions of each firm. b) Solve for the Cournot-Nash equilibrium. Calculate the quantity of each firm, the market price, and the profit of each firm.
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