Consider the following two-firm Cournot game. Suppose market demand is given by the equation P=24-Q, where Q= qA+qB. Suppose each firm has only four options: 6,7,8, or 9 units of output. Also assume that firms have no cost of production, for simplicity. Use this information to complete a payoff matrix by filling in profits.
What is/are the nash equilibrium for this game? Does the dominant strategy of IEDS solution concept help justify a particular outcome in this game?