T inverse demand in a cournot duopoly is p a minus bq1


The inverse demand in a Cournot duopoly is P = a − b(Q1 + Q2), and costs are C1(Q1) = c1Q1 and C2(Q2) = c2Q2. The government has imposed a per-unit tax of $t on each unit sold by each firm. The equilibrium output of each firm is the same as a situation where each firm's:

demand increases by t.

demand decreases by t.

marginal cost increases by t.

 

marginal cost decreases by t.

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Business Economics: T inverse demand in a cournot duopoly is p a minus bq1
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