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Analysts have estimated the inverse market demand in a homogeneous-product Cournot duopoly to be P=1103(Q1+Q2). They estimate costs to be C1(Q1)=11Q1 and C2(Q2)=29Q2 a. Determine
Analysts have estimated the inverse market demand in a homogeneous-product Cournot duopoly to be P=1103(Q1+Q2). They estimate costs to be C1(Q1)=11Q1 and C2(Q2)=29Q2 a. Determine the reaction function for each firm. Firm 1: Q1=Q2 Firm 2: Q2=Q1 b. Calculate each firm's equilibrium output. Firm 1: Firm 2: c. Calculate the equilibrium market price. $ d. Calculate the profit each firm earns in equilibrium. Firm 1: \$ Firm 2: \$
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