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Two firms are producing identical goods in a market characterized by the inverse demand curve P = 120 4 Q , where Q is

Two firms are producing identical goods in a market characterized by the inverse demand curve P = 120 – 4Q, where Q is the sum of Firm 1's and Firm 2's output, q₁ + q₂. Each firm's marginal cost is constant at $20.

Graph the reaction function for each firm and indicate the Nash equilibrium.

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Heres how to analyze it Inverse Demand Curve We are given P 120 4Q where P is the market price and Q is the total output q1 q2 This is an inverse dema... blur-text-image

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