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The inverse market demand in a homogeneous-product cournot

The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs are C1(Q1) = 12Q1 and C2(Q2) = 20Q2.

a. Determine the reaction function for each firm.

b. Calculate each firm’s equilibrium output.

c. Calculate the equilibrium market price.

d. Calculate the profit each firm earns in equilibrium.

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Solution Preview :

Prepared by a verified Expert

Microeconomics: The inverse market demand in a homogeneous-product cournot

Reference No:- TGS0653371

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Microeconomics: The inverse market demand in a homogeneous-product cournot

Reference No:- TGS0653371

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