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Two identical firms compete as a Cournot duopoly. The demand they face is P = 100 - 2Q. The cost function for each firm is C(Q) = 4Q. The equilibrium output of each firm is:

A. 8
B. 16
C. 32
D. 36

2 answers

16

C(q)=4Q
C(q)'=4
4Q=100-2Q-4
4Q=96-2Q
6Q=96
Q=16

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