Question: Question (7 Version 1) [24 marks] Consider a Cournot oligopoly with two firms, denoted as i = 1, 2. Each firm i has the same

Question (7 Version 1) [24 marks] Consider a Cournot oligopoly with two firms, denoted as i = 1, 2. Each firm i has the same total cost function TCi(qi) = c . qi. Firm 1's output is an imperfect substitute for firm 2's output ( and vice versa. ) Hence firms have different (but symmetric) inverse demands. The inverse demand for firm 1 is P1 = a - bq1 - dq2. Inverse demand for firm 2 is P2 = a - bq2 - dq1. Assume that d

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