Explore BrainMass

Explore BrainMass

    Cournot Duopoly

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

    The inverse market demand in a homogeneous product is P=100-2(Q1+Q2) and Cost are C1(Q2)=12Q1 and C2(Q2)=20Q2.

    A. Determine the reaction function for each firm.

    B. Calculate each firm's equilibrium output.

    C. Calculate the equilibrium market price.

    D. Calculate the profit each firm earns in equilibrium.

    © BrainMass Inc. brainmass.com October 9, 2019, 9:12 pm ad1c9bdddf

    Solution Summary

    All the parts of the question regarding the firm's equilibrium output, market price and profit have been solved neatly and step-by-step in the solution.