Two firms A and B are competing in a cournot duopoly. The reaction function of firm A is given by Q a = 45- 1/2 q b and the reaction function of firm b is given by Q b = 30- 1/2 Qa, where Qa and Q b represent the quantity of output produced by firm A and firm B respectively.
Suppose the market inverse demand is P=150-2 (Q a + Q b)
A. What will be the market price P in the Cournot equilibrium? Explain in detail show all calculations
B. Determine the price charged in this market in the Cournot equilibrium? Explain in detail show all calculations
C. Determine the revenue generated by each firm in the Cournot equilibrium? Explain in detail show all calculations
Two firms A and B are competing in a cournot duopoly. The reaction function of firm A is given by Q a = 45- 1/2 q b and
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