Two identical firms compete in output as a duopoly. No firm could possibly know what the...

Two identical firms compete in output as a duopoly. No firm could possibly know what the other firm will supply (Cournot). The demand they face is P = 10 – (q₁+q₂). The cost function for each firm is C(Q) = 4Q. What is the equilibrium output, price, and profit of each firm?

Expert Solution

Rahul Sunny answered 2 years ago

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