You are a producer of semi-trucks. Because it takes a long time to build a semi-truck, you make your output decisions before the demand information is actually revealed. The best prediction of what the demand for semi-trucks will be next year is a demand curve where:

P = 4000 - 2 Q,

Where P is the market price and Q is the total output in the market from all suppliers. Answer each of the following questions. Explain your answers and show your work. You should be able to come up with numerical answers.

Say you are faced with a Cournot setting where you face a competitor named SEMI. Your marginal cost is still 400 and SEMI's marginal cost is 400 per semi-truck. Describe the conditions of a Cournot setting. What quantity of semi-trucks will you produce? What quantity will SEMI produce? What will be the market price of semi-trucks? How much will each of you earn in profits? Please show step by step work.

Describe Conditions of Cournot setting.

1. Your production of semi-trucks _______________

2. SEMI's quantity of semi-trucks ________________

3. Market Price of semi-trucks _________________

4. Your Profit _______________

5. SEMI's Profit _______________