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 ( Q 1 + Q 2 ) and their costs are zero.

a. What is each firm's marginal revenue?

b. What are the reaction functions for the two firms?

c. What are the Cournot equilibrium outputs?

d. What is the equilibrium price?

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