Question: Consider a Cournot duopoly with the following inverse demand function: P = 600 3Q1 3Q2. The firms' marginal costs are identical; MC1(Q1) = 6Q1and MC2(Q2)

Consider a Cournot duopoly with the following inverse demand function: P = 600 3Q1 3Q2. The firms' marginal costs are identical; MC1(Q1) = 6Q1and MC2(Q2) = 6Q2.Based on this information, firm 1 and 2's reaction functions are:

a. r1(Q2) = 99 0.5Q2and r2(Q1) = 99 0.5Q1

b. r1(Q2) = 99 0.5Q1and r2(Q1) = 99 0.5Q2

c. r1(Q2) = 110 0.5Q2and r2(Q1) = 110 0.5Q1

d. r1(Q2) = 98 0.25Q2and r2(Q1) = 98 0.25Q1

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