Pete's Petro (PP) and Gina's Gas-World (GG) are the only two supplier of gasoline in the town of Podunk.Their gasoline they sell is identical.Market Demand for gasoline in Podunk is given by D(p)=60-P.PP and GG have identical marginal cost of gasoline production at MC=30.

Use the Cournot model to predict the outcome in the gasoline market in Podunk.Graph the predicted Cournot equilibrium.(hint:to find one individual's reaction function, assume a couple of production levels of the other firm, such as quantity of 4 and 8, and then work through what one's optimal production would be if competitor produces 4, and what it would be is competitor produces 8.....that gives enough to find the reaction function)