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The inverse market demand in a homogeneous product cournot duopoly is P=280-2Q=280-2(q1+q2) and costs are C1(q1) = 20q1 and C2(q2) = 30q2.
a. How much output will each firm produce in equilibrium?
b. What are the equilibrium market shares for these two firms?
c. Calculate the equilibrium market price.
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