Solve for the cournot equilibrium

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An industry consists of two firms, each of which have variable costs of $10 per unit but no fixed costs. The industry demand curve is P = 70 - Q.

Solve for the Cournot equilibrium. In doing so, derive the reaction function of each firm (call Q1 and Q2 the output of each firm). Solve for each firm's output, the market price and each firm's profits.

Reference no: EM13192222

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