Two identical firms compete as a Cournot duopoly. The demand they face is P = 600 − 5Q. The cost function for firm 1 is C1(Q1) = 20Q1, and the cost function for firm 2 is C2(Q2) = 40Q2. The equilibrium output for each firm is Multiple Choice firm 1 produces 80 and firm 2 produces 40. firm 1 produces 40 and firm 2 produces 36. firm 1 produces 30 and firm 2 produces 20. firm 1 produces 60 and firm 2 produces 66.
