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Q. The inverse market demand for mineral water is: P=200-10Q, where Q is the total market output and P stands for price of market. Two firms A and B have complete control of the supply of mineral water and both have zero costs.Find a Cournot Solutionfind an identical output for each firm that maximizes joint profits.
Continuing with the previous problem suppose that each firm can choose only two outputs - the ones from parts a and b in question 2. Denote these outputs qa and qb. Compute the payoff/profit matrix showing the four possible outcomes
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