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Can anyone explain the process for the following question?
Suppose a second firm enters the market. Let q1 be the output of the first firm and q2 be the output of the second. There is no change in market demand, which is given by Q = 53- P, but note that Q = q1 + q2. The second firm has the same MC as the first (incumbent) firm, but its fixed cost is $80. Assuming that both firms behave as Cournot duopolists who want to maximize individual profits, determine the best response function for each firm. Calculate the optimal outputs of each firm at the Nash Cournot equilibrium. Calculate the market price and individual and industry profits.
MC =$5
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