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Consider a market with two firms, each with constant marginal cost of $100 and facing a market demand curve of P=1000 - Q where W is total output of the two firms.
A) Suppose they choose simultaneously, what is the Cournot Nash Equilibrium for this situation?
B) Suppose they choose simultaneously, what is the Bertrand Nash Equilibrium for this situation?
C) Suppose one firm chooses output first, the other observes the first mover's quantity and then chooses output. Find the Stackleberg Nash Equilibrium in this situation.
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