Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 41500 - 98 Qb. The marginal cost for firm 1 is given by mc1 = 1137 Q. The marginal cost for firm 2 is given by mc2 = 813 Q. What quantity will of output will the duopoly produce ? (Assume firm 1 has a fixed cost of $ 9150 and firm 2 has a fixed cost of $ 400 .)

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To determine the quantity of output that the Cournot duopoly will produce we need to solve for the N... View the full answer