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9.1 Suppose that the inverse demand equation for an industry's output is P = 55 Q. The industry consists of two prot-maximizmg rms with constant

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9.1 Suppose that the inverse demand equation for an industry's output is P = 55 Q. The industry consists of two prot-maximizmg rms with constant average total and marginal cost equal to $5 per unit and no xed cost. Both firms are Cournot competitors. a. Determine the reaction function for each rm. b. What is the Cournot-Nash equilibrium? 0. What is the market price? d. What is the prot for each rm

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