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question about eco 405 as photo QUESTION 4 6 point Consider a market with two firms and both firms produce identical products The price of

question about eco 405 as photo
QUESTION 4 6 point Consider a market with two firms and both firms produce identical products The price of the product is determined by P - 24 - Q, where Q=Of + On is the total output of both firms Both firms have zero marginal cost and zero fixed cost. a. (2pts) First, find Firm 1's best response function, namely optimal output Of as a function of Firm 2's output @2 b. (1pts) Next, use symmetry to get Firm 2's best response function c. (3pts) Now, find the Cournot-Nash equilibrium for these two firms. How much profit does each firm earn in the equilibrium? Attach File Browse My Computer Browse Content Collection

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