Question: ECON 302 Question Please write each steps. Thank you! Suppose there are two rms in a market who each simultaneously choose a quantity. Firm 1's

ECON 302 Question Please write each steps. Thank you!

Suppose there are two rms in a market who each simultaneously choose a quantity. Firm 1's quantity is ql, and rm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 130 - Q. Also, each rm has constant marginal cost equal to 25. There are no xed costs. The marginal revenue of the two rms are given by: - MR1 = 130 2q1 a2 - MR2 = 130 q1 2q2. A) How much output will each rm produce in the Cournot equilibrium? B) What will be the market price of the good? C) What is the deadweight loss that results from this duopoly? D) How much prot does each rm make? E) Suppose Firm 2 produced 20 units of output. How much output should Firm 1 produce in order to maximize prot

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