Suppose there are two firms A and B in the
market and the market demand is P = 50 – Q, where P is the price
per unit and Q is the total quantity produced by the two firms (the
sum of QA and QB ). The marginal cost of producing the product is
$10 for both firms and fixed costs are zero. Determine what would
be the price if both firms would produce at the Cournot
equilibrium.

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Question: Suppose there are two firms A and B in the market and the market demand is P = 50 – Q, where P is…
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22

23.33

13.33

26

26.66

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