Question: Question 7 0 / 1 pts Consider a Cournot oligopoly firm with two firms. Both firms have a constant marginal cost equal to $10 per

Question 7 0 / 1 pts Consider a Cournot oligopoly firm with two firms. Both firms have a constant marginal cost equal to

$10 per unit, and compete by setting quantity levels. The market demand

is given by PP (Q) = 150 - 2Q. If firm 1

Question 7 0 / 1 pts Consider a Cournot oligopoly firm with two firms. Both firms have a constant marginal cost equal to $10 per unit, and compete by setting quantity levels. The market demand is given by PP (Q) = 150 - 2Q. If firm 1 decides to produce 20 units, what is the best response of firm 2? In other words, what is the optimal quantity for firm 2 to produce if firm 1 produces 20 units? 60Question 8 0 / 1 pts Consider a Cournot oligopoly model with two firms. Both firms have a constant marginal cost equal to $10 per unit, and compete by setting quantity levels. The market demand curve is given by PP (Q) = 100 - Q. Find the resulting Nash equilibrium. What is the total quantity level in the market? 25

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