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A market has just two firms in it. Demand is given by the equation Q = 278 - 4*P. For Firm 1 Marginal Revenue: MR
A market has just two firms in it. Demand is given by the equation Q = 278 - 4*P. For Firm 1 Marginal Revenue: MR = (278/4) - (2/4)*(Q1 + Q4) Marginal Cost: MC = 5*Q4 For Firm 2 Marginal Revenue: MR = (278/4) - (2/4)(Q1 + Q2) Marginal Cost: MC = 5*Q> According to the Cournot Model, what will the price of this good be? Round your final answer to two decimal places. Hints: In the Cournot Model, firms follow the profit maximizing rule. It is reasonable to assume that Q1=Qo
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