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Suppose a market has two rms that sell identical products. Both rms have a constant marginal cost of 5 and have no xed costs. Demand

Suppose a market has two rms that sell identical products. Both rms have a constant marginal cost of 5 and have no xed costs. Demand for the product is given by P = 20 Q where Q = q₁+ q₂and qi is the quantity rm i produces.

Find the Cournot equilibrium price, quantities, and prots for each rm.

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