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Problem: The market demand function for a pair of Cournot duopolists is given as Q = 12 -P, where Q = Q1 + Q2. Both firms have the same Total Cost function: Ci(Qi) = 18Qi for i=1,2.
Required:
a. Calculate the equilibrium quantities for both Cournot duopolists (and).
b. Calculate the equilibrium prices for both Cournot duopolists (and).
c. Calculate the profits for both Cournot duopolists profits (and).
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