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Two companies produce the same item. The companies each determine their own output and the combined output of the two is sold at the market price. Company A has controls its costs better than its competitor, B. The demand curve is P=280-2(Q1+Q2) and the cost function is C1(Q1)=3Q1 and C2(Q2)=2Q2
Find out the followings
1) Marginal revenue for both,2) Reaction function for both,3) Equilibrium output,4) Equilibrium profits.
Explain how might knowing this affect you as the manager of a large firm.
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