Two producers having equal positions on a market offer two substitute products. The demand for these products evolves according to the following demand functions:

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y (P, P2) = ap +2 +, y (P, P2)=a2p2 + y2P1 + b, ai, yi, bi > 0, ai yi i 1, 2. Production total costs for the first and for the second firm, respectively, are as follows: C2, d > 0. An output level of each product matches the demand reported by consumers for this product by its given price: Yi = yd (P1, P2), i = 1, 2. (a) a; = 2, (b) a = (c) aj = 2, :2, (d) ai (e) ai = 2, (f) ai = 3, clot (y) = Cy + d, chot (y2) C2y2 + d, = 3, 1. Determine an equilibrium state in the Cournot duopoly model by the following assumptions for i = 1, 2: = = b = 20, b = 20, b = 21, b = 20, b = 20, C, di > 0, Yi = 1, Vi = 1, 1, Vi = Yi = 1.9, Vi = bi = 21, Yi = 1.9, C = 2. 2. Present a mechanism of reaching the equilibrium state when: 1, C = 1, C = 1, C = 1, C = 1, C = 2,