two firms each have a marginal cost c=30. Demand is:

P=150-5Q where Q=q₁+q₂ and q_i is the quantity of firm i=1,2.

If the firms simultaneously choose quantities, what would be the Cournot-Nash equilibrium quantities and the equilibrium market price?

q₁ =q₂ =

P =

If the firms simultaneously choose prices. What would be the Bertrand Nash equilibrium?

p₁ =p₂ =

If the firms have capacity constraints of K₁=7 for firm 1 and K₂=7 for firm 2. The firm can produce at 30 per unit, what would the equilibrium prices be?

p₁ =p₂ =

When firm 2 produces K₂=7 units, what would firm 1's residual demand be?

How do you verify equilibrium prices?