Find the cournot equilibrium and best response function

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Reference no: EM13219432

Consider a Cournot duopoly with the inverse demand P = 260 2Q. Two firms compete choosing their quantities. Both firms have constant marginal and average cost MC = AC = 20. a. Find each firm's best response function. b. Find the Cournot equilibrium. c. Plot the best response curves and illustrate the equilibrium point.

Reference no: EM13219432

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