1. Joe's marginal cost is $25 per cubic yard instead of $40 per cubic yard; Rebecca's remains at $40.Recall that the market demand function isQd=10,000100P,wherePis the price of a cubic yard of concrete andQ^dis the number of cubic yards demanded per year. Competition in this market is described by the Cournot model.
2. What are the equilibrium quantities for Joe and Rebecca in this market?

1. What is the equilibrium price in this market?

1. How does the market price and total market quantity compare to the market in which both firms face a marginal cost of $40?

1. Graph the best-response functions for Joe and Rebecca and indicate the equilibrium quantities.