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Assumptions Market Demand: P = 14- Qrotal Two P = 16- 1 [HD] Groups: P = 12- 2(LD] (HD = high demand; LD = low demand] IncumbCournot Duopoly 1. Take derivative of demand function in terms of qı (dq1/dP). = MR1. 2. Set MR1 = MC. Thats Firm ls reacti

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71 MC=4 02 SUNDAY Lownot Doupoly p= 14 + (9, +92) MR, = 14-9,- 192 MC = 4 MR = MCMONDAY 10 U MONDAY 19 ใน 1ใน ใน - 10 -19% ) HR3 14 - ใน 1 - 2 Substitute qo= 10-192 in eq. ② 16. - ฯ - ใน 10 %) HC, 4 1 - ใน

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