The (Inverse)demand in a Cournot Duopoly Is P = a -

question 131

Essay

The (inverse)demand in a Cournot duopoly is P = a - b (Q₁ + Q₂),and costs are C₁(Q₁)= c₁Q₁ and C₂(Q₂)= c₂Q₂.
Show that the Cournot equilibrium levels of output are $$Q _ { 1 } = \frac { a + c _ { 2 } - 2 c _ { 1 } } { 3 b }$$ and $Q _ { 2 } = \frac { a + c _ { 1 } - 2 c _ { 2 } } { 3 b }$ .

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through control of skeletal muscles.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and promoting 'rest and digest' functions.

Central Nervous System

The principal part of the nervous system comprising the brain and spinal cord, responsible for processing information and controlling responses.