What is the cournot equilibrium

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Reference no: EM13869327

Two identical firms compete in competition (Cournot competition) in the same market where the inverse demand is P(Q) = 100 − Q. The constant marginal cost of both firms is 10.

(a) Find the best response function for each firm.

(b) What is the Cournot (simultaneous) equilibrium?

Reference no: EM13869327

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