The owner of an avocado farmer that covers the entire state market died and leaving 50% of the company to each of his two children.

Because they do not get a good relationship, the brothers decide to separate the capital and workers so each one can have their own company.

Use a Cournot-type collusion model to analyze the decision the siblings have made.

Considering that the cost of producing each kilo is 20 and a demand function is equal to P = 70-1 / 5Q, where Q is the quantity demanded in tons.

1) Set the game strategically and find the Nash equilibrium.

2) If you were one of the brothers, would you divided the company? (Justify your answer)