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game Theory Two firms, A and B, are engaged in a Cournot quantity competition game. They choose their respective quantities, qAfor firm A and 9B

game Theory

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Two firms, A and B, are engaged in a Cournot quantity competition game. They choose their respective quantities, qAfor firm A and 9B for firm B, simultaneously and independently. It is known that firm A's reaction function is given by A = 20-9B 2 and firm B's reaction function is 9B =- 16-qA 2 The Nash equilibrium quantity choices are (choose one): O 91 = 50 and 92 = 50 O qA = 8 and qB = 4 other 9A = 4 and 9B = 4

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