Question: Intel and Advanced Micro Devices (AMD) are the only two firms that produce central processing units (CPUs)-the brains-for personal computers. Assume that the two firms'

 Intel and Advanced Micro Devices (AMD) are the only two firms

Intel and Advanced Micro Devices (AMD) are the only two firms that produce central processing units (CPUs)-the brains-for personal computers. Assume that the two firms' estimated inverse demand and marginal revenue functions are symmetric as follows: PA = 490 - 10qA - 6q1, PI = 490 - 10q1 - 6qA, MRA = 490 - 20qa - 6q1, MRI = 490 - 20q1 - 6qA, where price is dollars per CPU, quantity is in millions of CPUs, the subscript / indicates Intel, and the subscript A represents AMD. Each firm faces a constant marginal cost and average cost of $40 per unit. (For simplicity, we assume that firms have no fixed costs.) Assume that both firms engage in Cournot competition. Solve for each firm's Nash equilibrium quantity, price, and profits

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