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In a Cournot duopoly, both firms face the market demand: P = 100 QD, where P is price and QD is total quantity demanded in
In a Cournot duopoly, both firms face the market demand: P = 100 QD, where P is price and QD is total quantity demanded in the market. Firm 1's cost function is given by C1 = .8Q2 1 and firm 2's cost function is given by C2 = 6Q2, where Q1 is firm 1's output and Q2 is firm 2's output. Derive firms' optimal reaction functions and calculate equilibrium quantities and price.
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