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Posted on Jun 13, 2024

Consider a Cournot duopoly, where each firm has a marginal cost MC = 80, and the total market demand is given byQ = 400 (0.5)p

a)What are the best-response functions of each firm?

b)What is the equilibrium output level for each firm?

c) How does the total output level compare to the cartel (collusive) output level?

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