What are the best response functions for each firm

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In a Cournot duopoly, firm 1 has cost function C1 = 20q1, firm 2 has cost function C2 = 40q2, and market demand is Q = 120 - (1/2)p, where q1, q2, Q, and p are output by firm 1, output by firm 2, total output, and market price, respectively.

a) What are the best response functions for each firm?

b) Find the Cournot Nash Equlibrium output, price, and profit for each firm.

Reference no: EM131387137

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