Question: Give typed solution full explanation Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 135 - 13 Qb. The

Give typed solution full explanation

Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 135 - 13 Qb.

The marginal cost for firm 1 is given by mc1 = 6 Q.

The marginal cost for firm 2 is given by mc2 = 18 Q. (Assume firm 1 has a fixed cost of $ 67 and firm 2 has a fixed cost of $ 129 .) What is level of total surplus in the duopoly equilibrium ?

Answer HINT: 469.84

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