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Two rival companies sell software packages that are perfect substitutes. The software is sold over the web as a download, so the marginal cost is

Two rival companies sell software packages that are perfect substitutes. The software is sold over the web as a download, so the marginal cost is zero. The demand for the software is Q = 1000 - P. Assume that these firms are Cournot duopolists. Derive the reaction functions for the two firms, the quantity each will produce, and the market price that will be charged.

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