Question: please help me solve this. 3. Consider the following variant of the Cournot Model: Two rms simultaneously choose how much to produce and sell on

please help me solve this.

please help me solve this. 3. Consider the following variant of the

3. Consider the following variant of the Cournot Model: Two rms simultaneously choose how much to produce and sell on the market. The inverse demand is given by P (Q) = 500 5Q. Firm 1 has a marginal cost cl = 10 and rm 2 has a marginal cost 82 = 15. a. Find the CournotNash Equilibrium quantities of this game. How much prot is each rm making in equilibrium? (5 pts) b. Suppose that rm 2 could invest in a new technology that reduced its unit cost to 02 = 5 (rm 1's costs are the same). Find the new CournotNash Equilibrium quantities of this game. How much would rm 2 be willing to pay for this technology? (10 pts)

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