What is each firm-s reaction function, Microeconomics

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What is each firm-s reaction function

The market for widgets consists of two firms that produce identical products. Competition in the market is such that each of the firms independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. Firm 2 is known to have a cost advantage over firm 1. A recent study found that the (inverse) market demand curve face by the two firms is P=280-2(Q1+Q2), and costs are C1(Q1)=3Q1 and C2(Q2)=2Q2.

What is each firm's marginal revenue
And What is each firm's reaction function?

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Microeconomics: What is each firm-s reaction function

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Recent Questions Asked Microeconomics

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Reference No:- TGS041234

Recent Questions Asked Microeconomics

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