Academic help online

Let’s consider a market in which two firms compete as quantity setters, and the market demand curve is given by Q = 4000 – 40P. Firm 1 has a constant marginal cost equal to MC1 = 20, while Firm 2 has a constant marginal cost equal to MC2 = 40.
a) Find each firm’s reaction function.
b) Find the Cournot equilibrium quantities and the Cournot equilibrium price.

All Rights Reserved,
Disclaimer: You will use the product (paper) for legal purposes only and you are not authorized to plagiarize. In addition, neither our website nor any of its affiliates and/or partners shall be liable for any unethical, inappropriate, illegal, or otherwise wrongful use of the Products and/or other written material received from the Website. This includes plagiarism, lawsuits, poor grading, expulsion, academic probation, loss of scholarships / awards / grants/ prizes / titles / positions, failure, suspension, or any other disciplinary or legal actions. Purchasers of Products from the Website are solely responsible for any and all disciplinary actions arising from the improper, unethical, and/or illegal use of such Products.