Question: 1 Consider Cournot duopoly The demand function is 4 where is firm 1 and 2 output Each firms unit production cost can be 0 or

1 Consider Cournot duopoly The demand function is 4 where is firm 1 and 2 output Each firms unit production cost can be 0 or 2 Each firm knows its cost but not the rivals Suppose that each firm believes that the rival has cost zero with probability 01 Find the BayesianNash equilibrium output profile 25 points

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