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you are given a cournot model with linear demand and identical firms where Q(P) = D-P TC(Q) = cQ D > c if there are

you are given a cournot model with linear demand and identical firms

where Q(P) = D-P

TC(Q) = cQ

D > c

if there are two firms, will they prefer a cournot quantity or half the monopoly quantity? show this in a 2x2 game matrix (be sure to show the profits when one firm chooses the monopoly and one chooses the cournot)

if D=6 and c=2 suppose a repeated game (indefinetly) with a discount factor b. what values of b will permit continued collusion?

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