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    1. Economics
    2. Macroeconomics
    3. General Equilibrium
    4. 147524

    Equilibium Output in a Cournot Duopoly

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    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.

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    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

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