What is the cournot outcome


The inverse market demand for fax paper is given by P=400-2Q. There are two firms who produce fax paper. firm 1 has a cost advantage. firm 1 has unit cost that is constant and equal to 25 whereas firm 2 has a unit cost of 40. they compete in the market in quantities. That is, they can choose any quantity to produce, and they make their quantity choices simultaneously. what is the cournot outcome? What are profits for each firm?

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Microeconomics: What is the cournot outcome
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