The inverse market demand for mineral water is: P=200-10Q, where Q is the total market output and P is the market price. Two firms, A and B, have complete control of the supply of mineral water and both have zero costs.
Find a Cournot Solution.
find an identical output for each firm that maximizes joint profits.
Continuing with the previous problem , assume that each firm can choose only two outputs - the ones from parts a and b in question 2. Denote these outputs qa and qb.
Compute the payoff/profit matrix showing the four possible outcomes.