Consider an industry consist

timer Asked: Dec 20th, 2015

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Consider an industry consisting of two firms producing an identical product.  The inverse market demand equation is P = 2 – Q/2.  The total cost equations for firms 1 and 2 are TC1 = Q1 and TC2 = Q2, respectively. Suppose that the two firms are Cournot competitors.  The equilibrium level of output for firm 1 is:

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