Calculate the profit each firm earns in equilibrium

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Reference no: EM131049517

The inverse market demand in a homogeneous-product Cournot duopoly is P = 200 - 3(Q1 + Q2) and costs are C1(Q1) = 26Q1 and C2(Q2)= 32Q2

a. Determine the reaction function for each firm.

b. Calculate each firm's equilibrium output.

c. Calculate the equilibrium market price.

d. Calculate the profit each firm earns in equilibrium

Reference no: EM131049517

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