Problem
1. Explain why, at a Cournot equilibrium with two firms, neither firm would have any regret about its output choice after it observes the output choice of its rival.
2. What is a reaction function? Why does the Cournot equilibrium occur at the point at which the reaction functions intersect?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.