Determine the long-run equilibrium output and selling price

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Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function: P = 600 Â- Qc- Qd Where Qc and Qd are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are TCc = 25,000 + 100Qc TCd= 20,000 + 125Qd. Assume that the firms act independently as in the Cournot model (i.e., each firm assumes that the other firm Â's output will not change). A. Determine the long-run equilibrium output and selling price for each firm.

Reference no: EM13218660

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