Question: Consider two duopolists whose cost functions are C i = 10q i , i= 1, 2, where C i and q i are their costs

Consider two duopolists whose cost functions are Ci = 10qi, i= 1, 2,

where Ci and qi are their costs and outputs, respectively. The two

duopolists have identical products and face a market demand function:

p = 40 2q, where q = q1 + q1. Find their contract curve.

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