Calculate cournot nash equilibrium

Reference no: EM1311941

Suppose two identical firms produce widgets and they are the only firms in the market. Their costs are given by C₁= 5 (Q₁) and C₂= 5 (Q₂) respectively, where Q₁is the output of firm one and Q₂is the output of firm 2. Price is determined by the following demand curve: (MC for each firm is 5)

P= 100-Q, where Q = Q₁+ Q₂.

Find the Cournot-Nash equilibrium.

Reference no: EM1311941

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