Firms A and B are Cournot competitors who produce good Qi, where i = A,B. Assume...

 

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Firms A and B are Cournot competitors who produce good Qi, where i = A,B. Assume both firms have a fixed cost of 50 and a variable cost of 5Q2. Let demand for good q by Q = 240 - 2P, where P is price. Find firm A's reaction function. Firms A and B are Cournot competitors who produce good Qi, where i = A,B. Assume both firms have a fixed cost of 50 and a variable cost of 5Q2. Let demand for good q by Q = 240 - 2P, where P is price. Find firm A's reaction function.

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To find firm As reaction function we need to determine the profitmaximiz... View the full answer