Find the best response function for each firm

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Consider the short-run situation of a market with three identical firms producing homogeneous outputs. Each firm's total cost function is C(q) = (1/2)q2, where q 0 is a possible output. Market demand is given by Q(p) = 2-2P

a. Find the best response function for each firm.

b. Find the Cournot equilibrium in this market.

Reference no: EM13235238

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