hallinquestkaly132 hallinquestkaly132

27-05-2023
Business

contestada

Suppose that two firms are Cournot competitors. Industry demand is given by:P = 200 − q1 − q2 where q1 is the output of Firm 1 q2 and is the output of Firm 2. Both Firm 1 and Firm 2 face constant marginal and average total costs of $20.

Solve for the Cournot price, quantity, and firm profits.
P = 200 − q1 − q2

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