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Suppose that two oligopolists A and B produce an and y units of a commodity respectively. It is given that : o The price of

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Suppose that two oligopolists A and B produce an and y units of a commodity respectively. It is given that : o The price of the commodity is P(:I:, y) = 80 0.25(m + y). o The cost function for rm A is 01(m) = 4x + 100. o The cost function for rm B is 02 (y) = 33/ + 125. o The revenue of rm A is P(a:, y) - ac. o The revenue of rm B is P(:I;, y) - y. o The prot of a rm is given by its revenue minus its cost. (e) Solve the system of equations :0 = g(y) and y = f (9:). Explain that the solution is a. Nash equilibrium

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