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Duopoly quantity-setting firms face the market demand: P = 500 (1/3)Q where Q = q1 + q2. Each firm has a marginal cost of $80 per unit.

Duopoly quantity-setting firms face the market demand: P = 500 − (1/3)Q where Q = q1 + q2. Each firm has a marginal cost of $80 per unit. Assuming the firms compete according to the Cournot model, what are the quantities chosen by each firm in equilibrium? What is the market price? 

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q1=420 units q2=420... View the full answer

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