_ Consider a Cournot duopoly with zero marginal costs. The inverse demand function is given by P(Q) : 1 Q. Each rm sets a quantity
_ Consider a Cournot duopoly with zero marginal costs. The inverse demand function is given by P(Q) : 1 Q. Each rm sets a quantity q; E [0, q], Where q represents a capacity level of rm 1i. (1) Suppose (j = 1. Obtain a Nash equilibrium of this game. (2) Suppose q : 1/2. Obtain for a Nash equilibrium of this game. (3) Suppose (j = 1/4. Obtain a Nash equilibrium of this game
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