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There are 2 oligopolies (Organization 1 and 2) , they produce a homogeneous product with the same cost functions C= qi2, which faces a demand
There are 2 oligopolies (Organization 1 and 2) , they produce a homogeneous product with the same cost functions C= qi2, which faces a demand curve, Q= 1-p. Please notice that Q is the total output in the oligopoly industry: Q-_ qi, such that qi=ql, q2. a. Please give the Cournot equilibrium for the market? That is what will be the output, profit and price for each of the firm. So what is the total output in the industry? b. If Firm I can choose its output first, what will the outcomes be? Compare and contrast the results you found in (a) with the one in (b). c. What is the type of the game played by both firms in question 1(b)? Complain your answer detailedly
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