1) Find Sally Anne's Revenue function, then find Sally Anne's Marginal Revenue Function.

2) Set marginal revenue equal to marginal cost and solve for q_s to get Sally Anne's best-response function.

3) Because both firms are identical, the form of AFPSECP, Ltd's best- response function is similar. Write it down.

4)Use substitution to find the Cournot Equilibrium quantity for both Sally Anne's and AFPSECP, Ltd.

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