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Suppose that two identical firms produce widgets and that they are the only firms in the market that make their production decision simultaneously and noncooperatively.where
Suppose that two identical firms produce widgets and that they are the only firms in the market that make their production decision simultaneously and noncooperatively.where Q1is the output of firm 1 and Q2is the output of firm 2. Price is determined by the following demand curve: P=500-2Q. Note that Q=Q1+Q2, where Q1is the output of firm 1 and Q2is the output of firm 2. Also, assume that marginal cost equals 0 for both firms.To maximize profit, how much output does each firm produce? Please round your answer to two decimal places.
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