Ci = 30Qi, where Qi for i = {A,B} is output produced by each firm. m – InterviewSolution

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1.	Ci = 30Qi, where Qi for i = {A,B} is output produced by each firm. market demand is given by p= 210 - 1.5 Q, where Q = QA + QBfind out cournot equilibrium
Answer» The market demand is P=100-1.5Q, where Q=qa+qb and the FIRM's cost STRUCTURE is such that MCa=ACa=20 and MCb=ACb=20. a) Solve for the Cournot reaction functions of each firm. b) Solve for the Cournot-Nash equilibrium. CALCULATE the quantity of each firm, the market PRICE, and the profit of each firm.

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