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Two rms, which each have a marginal cost of zero and xed cost of zero, produce a good. The price of the good is given
Two rms, which each have a marginal cost of zero and xed cost of zero, produce a good. The price of the good is given by P = 240Q where Q = q1 q2, the quantities produced by each rm. a. First, consider the case of Cournot competition, where the rms compete by choosing quantities (capacities). Solve for the Nash equilibrium when each rm simultaneously decides its quantity
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