Question: Firms 1 and 2 produce differentiated goods Firm 1 s inverse
Firms 1 and 2 produce differentiated goods. Firm 1’s inverse demand function is p1 = 260 – 2q1 – q2, while Firm 2’s inverse demand function is p2 = 260 – 2q2 – q1. Each firm has a constant marginal cost of 20. What is the Nash-Cournot equilibrium in this market?
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