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Determination of equilibrium price and output and consumer and producer surplus in a duopolistic industry based on Cournot and Stakelberg models and a comparison to perfect competition.

Two identical firms face linear demand. Market demand is given by P=30-Q. suppose both firms face zero marginal costs.
1. Solve for Cournot equilibrium prices and outputs.
2. Solve for Stakelberg equilibrium prices and outputs.
3. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibrium to perfect competition.

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Solution Attachment

Solution document is in Word format