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Oligopoly
Consider the market for a (homogeneous) product where inverse demand is
given by:
P=120-Q
A firm's cost function for producing the good:
C(q)=0.5q2+40q
1. Suppose that there are 2 identical firms in the market. Find the Cournot-Nash equilibrium
2. Suppose that there are two identical firms in the market but one acts as a quantity leader. Find the SPNE (Stackelberg) equilibrium
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