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4.0 Consider a Cournot duopoly operating in a market with demand P = 140 - 3Q, where Q = q 1 + q 2 .The

4.0 Consider a Cournot duopoly operating in a market with demand P = 140 - 3Q, where Q = q₁ + q₂.The marginal cost of operation for each firm equals $20 per unit.Firm one's best-response function equals: q₁ = 20 - 0.5q_2.

Explain what the firm's best-response function represents.

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