Question
We consider a homogeneous products duopoly with a market demand function of P = 100-Q. Q= Q1 + Q2, both firms have constant marginal costs
We consider a homogeneous products duopoly with a market demand function of P = 100-Q.
Q= Q1 + Q2, both firms have constant marginal costs 100>MC>0 and there are no fixed costs.
What will the derived reaction function for each firm look like and what will the Cournot Nash Equilibrium be?
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
