Determine the reaction function for each firm

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Reference no: EM13182564

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.

Determine th reaction function for each firm.

FIrm 1 Q1=

Firm2 Q2=

Calculate each firm's equailibrium output.

Firm 1

Firm 2

Calculate the equilibrium market price.

Calculate the profit each firm earns in equilibrium

Firm1

Firm2

Reference no: EM13182564

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