Question: Suppose the inverse demand function for two Cournot duopolists is given by P = 10 - (Q 1 + Q 2 ) and their costs

Suppose the inverse demand function for two Cournot duopolists is given by P = 10 - (Q1 + Q2) and their costs are zero.

A.What is each firm's marginal revenue and reaction functions?

B.Determine the Cournot equilibrium outputs and equilibrium price.What is the implication of this model?

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