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How to do Cournot Equilibrium and duopoly problems in Microeconomics
Duopolist 1 Inverse Demand Function
P1 = 200 - 4q1 - 2q2
SRTC = 5q12 + 500
Duopolist 2 Wants to maintain
1/3 Market share :
Q2 = (q1 + q2 1/3)
What is Optimal Price P1* And Optimal Profit Π1* for duopolist 1
What is (optimal) quantity Q2 for duopolist 2
Do you have anyone there who knows how to do Cournot Equilibrium and duopoly problems in Microeconomics? Any solution must show all steps.
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