Hi There,

Please may you assist me with this question?

Suppose the two producers compete by setting their quantities in accordance with the Cournot model.

Data:

Firm A:Q₁= 450 - 2P₁+P₂

Firm B:Q₂= 450 - 2P₂ + P₁

The marginal costs of production are R60 per unit and fixed costs are equal to zero.

question:

Derive the two reaction functions of the two firms? how do i i go about answering this?