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Determination of reaction function, optimal price , equilibrium quantity and proofit for each firm in case of Cournot's Duopolly model.

The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2 (Q1 + Q2) and costs are C1 (Q1) = 12Q1 and C2(Q2) = 20Q2.

a. Determine the reaction function for each firm.
b. Calculate the firm’s equilibrium output.
c. Calculate the equilibrium market price.
d. Calculate the profit each firm earns in equilibrium.

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