Determine the reaction function for each firm

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Reference no: EM13694617

The 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 the reaction function for each firm.

Calculate each firm’s equilibrium output.

Calculate the equilibrium market price.

Calculate the profit each firm earns in equilibrium.

Reference no: EM13694617

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