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Q. Total industry profit, T = 1 + 2 = $288 + $144 = $432. Compared to Cournot equilibrium, total output has increased from 32 to 36, price has fallen from $21 to $17 and total profits have fallen from $512 to $432. Profits for Firm 1 have risen from $256 to $288, while profits of Firm 2 have declined sharply from $256 to $144. B. How much will each firm produce and what will its profit be?
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