Explore BrainMass

Explore BrainMass

    Equilibium Output in a Cournot Duopoly

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    2 identical firms (Cournot Duoploy) with a demand of P=100-2Q and a cost function of
    C(Q)=4Q. What is the equilibrium output of each firm? Please show the work.

    © BrainMass Inc. brainmass.com December 15, 2022, 6:25 pm ad1c9bdddf
    https://brainmass.com/economics/general-equilibrium/equilibium-output-in-a-cournot-duopoly-147524

    Solution Preview

    Two equations define a Cournot duopoly with identical firms. First, we have the demand function given by P= A - BQ = A - B(q1 + q2) where q1 is output of firm 1 and q2 is ...

    Solution Summary

    Equilibium Output in a Cournot Duopoly given demand and cost functions

    $2.49

    ADVERTISEMENT