Question: Suppose instead that Lysol and Clorox were competing using quantities (Cournot Competition). Also suppose that the respective marginal cost for each firm is MC/ysol

Suppose instead that Lysol and Clorox were competing using quantities (Cournot Competition).

Suppose instead that Lysol and Clorox were competing using quantities (Cournot Competition). Also suppose that the respective marginal cost for each firm is MC/ysol = 2 = AC lysol and MC clorox=2=AC clorox. The inverse demand equation is still P = 5 - Q. a. Exactly how many units will Lysol and Clorox supply? Hint: You have to first derive the reaction curves for each firm i. Lysol supply: ii. Clorox supply: b. What price will disinfectant be sold for in the market? c. How much revenue and profit will each firm make? i. Lysol revenue: ii. Clorox revenue: iii. Lysol profit: iv. Clorox profit:

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