Calculate the optimal set of prices and outputs

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Reference no: EM133442178

Question: Suppose there are two firms in the market that produce differentiated products.
Firms compete on quantity simultaneously. The demand faced by:

company 1 is P1 = 70-3Q1-Q2
company 2 is P2 = 70-Q1-3Q2

Where Q1 is the quantity produced by firm 1, and Q2 the quantity produced by firm 2.
Moreover, to simplify the problem, suppose that firms have no production costs.

Calculate the optimal set of prices and outputs

Reference no: EM133442178

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