The (Inverse) Demand in a Cournot Duopoly Is P =

question 92

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 and .

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