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Firm 1 and Firm 2 are the only two firms in a market where price is determined by the inverse demand function: P = 135
Firm 1 and Firm 2 are the only two firms in a market where price is determined by the inverse demand function: P = 135 - Q.
Q is the sum of Firm 1 and Firm 2's output, so Q = q1 + q2
Firm 1's total cost function is given by TC1(q1) = 3q1
Firm 2's total cost function is given by TC2(q2) = 7q2
If these firms Cournot compete (simultaneously setting quantities), what will market price be when both firms are maximizing profits in equilibrium?
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