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What is the cournot equilibrium of industry

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Two firms are Cournot competitors facing the demand curve Q = 42 - P. Firms have constant marginal costs of $6 and zero fixed costs.

a. What is the Cournot Equilibrium of this industry (prices, outputs and profits)?

b. Suppose that firm B has marginal costs to $18. (while the A's is still $6). Now, what is the Cournot Equilibrium of this industry?

c. How did firm A benefit from firm B's higher costs?

Reference no: EM133064132

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