9. Suppose a market is being supplied by a Cournot Duopoly. The market demand curve is...

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9. Suppose a market is being supplied by a Cournot Duopoly. The market demand curve is given by P-160-2Q where Q-q+q2. Both firms are identical, and have a constant marginal cost of production equal to 10. (a) Define the profit functions for firm 1 and firm 2. (b) Calculate each firm's profit-maximising price, output level and final profit [1 mark] 13 marks] (c) Suppose the two firms colluded successfully to act as a monopoly. How much would each firm produce now, and what would the price be? [1 mark] 9. Suppose a market is being supplied by a Cournot Duopoly. The market demand curve is given by P-160-2Q where Q-q+q2. Both firms are identical, and have a constant marginal cost of production equal to 10. (a) Define the profit functions for firm 1 and firm 2. (b) Calculate each firm's profit-maximising price, output level and final profit [1 mark] 13 marks] (c) Suppose the two firms colluded successfully to act as a monopoly. How much would each firm produce now, and what would the price be? [1 mark]