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Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 207 - 6 Qb. The marginal cost for firm 1 is given

Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 207 - 6 Qb.

The marginal cost for firm 1 is given by mc1 = 7 Q. The marginal cost for firm 2 is given by mc2 = 5 Q.

(Assume firm 1 has a fixed cost of $ 69 and firm 2 has a fixed cost of $ 91 .)

How much DWL does the duopoly cause ?

Hints: 158.04

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