Consider homogeneous good market with market demand curve

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Consider a homogeneous good market with the following market demand curve: Q = 8 − p, 0 ≤ p ≤ 8 = 0, p > 8. Two firms produce output at constant marginal cost which may be different. Derive the Nash equilibrium outcome and the profits of the two firms if firms engage in Cournot quantity competition, and their marginal costs are: C1 =$0, for firm1,and C2 =$5,for firm2.

Reference no: EM131091225

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