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cournot duopoly

GIVEN: TC(qi)=5 qi+10, i=12 P(Q)=20-2Q

ASSUME: a cournot duopoly where Q=q1+q2

DEMONSTRATE: the total output is less than the competitive output but more than the monopoly; the duopoly price is more than the competitive price but less than the monopoly; the total profits are more for the duopoly than the competitive profits but less than the monopoly profits.

Solution Summary

This job assesses cournot duopoly.