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Assume there are two firms a and b in market and market

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Suppose there are two firms A and B in the market and the market demeaned is P=50-Q where P is the price per unit and Q is the total quantity produced by the two firms (sum of QA and QB). The marginal cost of producing the product is $!0 for both firms and fixed costs are zero.

A. Determine how much should firm A produce at the Cournot equilibrium

B. Determine what would be the price if both firms would produce at the Cournot equilibrium

Reference no: EM13393036

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