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Demand in a duopoly is given by p = 100 - Q. Both firms have marginal cost c. a. Find the Cournot equilibrium quantities, price
Demand in a duopoly is given by p = 100 - Q. Both firms have marginal cost c.
a. Find the Cournot equilibrium quantities, price and profits.
b. Suppose Firm 1's marginal cost decreases to c - d (while Firm 2's marginal cost is still c). Find the new Cournot equilibrium quantities, price and profits.
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