Steps to solve for the Cournot competition: 3. Using each firm's total revenue, find the marginal revenue curve for each firm. Let MR, and MR2 represent the marginal revenue of firm 1 and firm 2, respectively. aTR1 MR1 = = * 91 b b aq1 aTR2 q1 SIN MR2 = = * 92 b aq2Steps to solve for the Cournot competition: 4. Using each firm's per unit cost, find the total cost for each firm. Let TC, and TC2 represent the total cost of firm 1 and firm 2, respectively. TC, = c * q1 and TC2 = c * q2.5. Using each firm's total cost, find the marginal cost curve for each firm. Let MC, and MC2 represent the marginal cost of firm 1 and firm 2, respectively. aTC1 MC1 = c and MC2 aTC2 = C. = = aq2 oq16. Derive each firm's reaction function by equating their marginal revenue to their marginal cost. MR1 = MC14 * 91 = c and if we solve for q1 b b a-b*c-q2 91 Firm 1's reaction function) 2