1 The (inverse) demand in a Cournot duopoly is P a b (Q 1 Q 2 ), and costs are C 1 (Q 1 ) c 1 Q 1 and C 2 (Q 2 ) c 2 Q 2 Show the Cournot equilibrium levels of output

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1.The (inverse) demand in a Cournot duopoly is P = a - b (Q 1 + Q 2 ), and costs are C 1 (Q

1.The (inverse) demand in a Cournot duopoly is P = a - b (Q₁ + Q₂), and costs are C₁(Q₁) = c₁Q₁ and C₂(Q₂) = c₂Q₂. Show the Cournot equilibrium levels of output.

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