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. A Cournot duopoly with homogeneous products has an inverse demand curve P-400- 5(OA+QB) and costs are CA(QA) 30QA and Ce(Qa
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Cournot Model P = 400 5(QA+QB) BRA TRA=PQA =[400-5 (QA+QB)]QA TRA = 400 QA - SQ -SQAQB beton =400(1) -10 Qs -5Q8 (1) MRA = 10

TRB = [uoo - SQA - SQB] PB = цоо @ – sq, qg - я - цео (1) - SQл (1) — 10 в ITRB &n MRg = Мео - 50А — 109 Та то в MC B = dTLB

EO solving BRA and BRB equation 202A + Rp = 74 LQA + UQB = 1ny + -3QB=-70 QB = 70 substituting 20A + 20 204 224 PB into eq BRTRA= P.QA = 30 x 152 3 TCA = 30QA = 1520 Profit A = TRA-TCA = 15 20 -1520 =0 TRB = P.QB = 30x70 =700 TCB = 40 QB Fuo X 70 3 -

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