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Cournot duopoly revisited consider the cournot duopoly

(Cournot Duopoly Revisited) Consider the Cournot duopoly model where the (inverse) demand is P (Q) = a Q. The two firms now have asymmetric marginal costs: c1 for firm 1 and c2 for firm 2.

(a) What is the Nash equilibrium if 0

(b) What is the Nash equilibrium if 0 a + c1?

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Managerial Economics: Cournot duopoly revisited consider the cournot duopoly

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