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Consider a duopoly that faces market demand P=900-Q , where market quantity equals the sum of outputs produced by the two firms, Q=Qa+Qb . Assume

Consider a duopoly that faces market demand P=900-Q , where market quantity equals the sum of outputs produced by the two firms, Q=Qa+Qb . Assume that marginal cost for each firm equal zero, MCa=MCb-0 .

a) Calculate the profit-maximizing output for each firm .

b) Calculate the equilibrium market price.

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