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Suppose that there are two duopolists,A and B, choosing output in a Cournot game. The market demand curve is given by p = 100 q

  1. Suppose that there are two duopolists,"A" and "B", choosing output in a Cournot game. The market demand curve is given by

p = 100 qa qb.

Firm A has zero marginal cost, while firm B has a constant marginal cost of MCb = 20.

What is the equilibrium price in the market? (8 points)

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