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Two firms compete as a Cournot duopoly selling an identical product. The demand they face is P = 578 4Q,where Q = Q1+ Q2.The cost
Two firms compete as a Cournot duopoly selling an identical product. The demand they face is P = 578 4Q,where Q = Q1+ Q2.The cost function for each firm is TCi= 2Qiand marginal cost is MCi= 2. The subscript i represents each individual firm. If the two firms agree to produce the collusive outcome, each firm will produce a quantity of
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