The inverse market demand in a homogeneous-product Cournot duopoly is

P = 4.700 - 2(Q₁+Q₂)

and costs are C₁(Q₁) = 5 Q₁ and C₂(Q₂) = 3 Q₂.

a.Determine the reaction function for each firm

b.Calculate each firm's equilibrium output and the market price. Use a diagram to show the Cournot Equilibirium. Find also revenue for each firm

c.Explain the similarities and differences between Cournot, Sweezy, and Stackelberg model.