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Consider 2 out of 4 firms on a perfectly competitive market - firms 1 and 2. They produce q1 and q2, respectively. The market demand
Consider 2 out of 4 firms on a perfectly competitive market - firms 1 and 2. They produce q1 and q2, respectively. The market demand is Q=20-2P, and we know that the other firms (3 and 4) produce q3+q4=2. The cost functions of firms 1 and 2 are c1(q1)=6q1 and c2(q2)=2q2+0.5q2 2 , respectively. Find the equilibrium on the market (Q* and P*) as well as underlying q1 and q2. Note: do not worry if the profit is not zero
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