Question

the firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is p1=82-q1-0.5q2.

The inverse demand for Firm 2 is p2=40-q2-0.5q1. Each firm has a marginal cost of ​$1 per unit. Solve for the​ Nash-Cournot equilibrium quantities.

The Cournot equilibrium quantities are q1= _____ units q2= _____ units

(Enter your responses rounded to two decimal​ places.)

Answer 1