Question: 3 Consider two firms (A and B) that initially playing Cournot quantity competition in a market. The demand curve in this market is P =

3 Consider two firms (A and B) that initially playing Cournot quantity competition in a market. The demand curve in this market is P = 2 %(qA + (13) and marginal cost of production for both firms is $1. Now suppose that manager of firm A has an offer to rent a new machine with the following features: 0 It only works for A and not for B; o It costs $0.7; o It lowers marginal cost of firm A to $0.5 As the company's economic consultant, what is your recommendation to the manager to rent or not to rent

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