Question: Duopoly quantity-setting firms face the market demand ( = 150 - q1 - q2. Each firm has a marginal cost of $60 per unit. a.

Duopoly quantity-setting firms face the market demand
( = 150 - q1 - q2.
Each firm has a marginal cost of $60 per unit.
a. What is the Nash-Cournot equilibrium?
b. What is the Stackelberg equilibrium when Firm 1 moves first?

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a Using Equation 1416 the Cournot equilibrium quantity for each of the duopoly firms is q a m3b ... View full answer

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