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Consider a Cournot oligopoly with two firms, where the demand curves are given by P =150- 01 -20, P, =150-201- @2 and that costs are
Consider a Cournot oligopoly with two firms, where the demand curves are given by P =150- 01 -20, P, =150-201- @2 and that costs are given by 70(0 )= 03 . MC1=01 70(0;)=02, and MC,=0, Also. marginal revenues can be written as MR =150-20,- 20,- MR,=150-20, -202 Solve for each firm's best response function. O 3 . BR : 0 =50- -0, BR : 0_=50-- 2 O . BR : 0 =33.3- WIN BR : 0_=33.3- -91 O . BR : 0, =50- 2 BR : 0.=50- O BR. Q. =33.3- BR: 0. =33.3-Consider the Cournot setup described in the question immediately before this one. Solve for each firm's equilibrium output and profit. Answers should have no commas or dollar signs. If your answer is in decimal form, round to two decimal places. Profit 1= Profit 2=
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