2 companies produce the same item. The companies each
determine their own output and the combined output of the two is sold at the
market price. Company A has controls its costs better than its competitor, B.
The demand curve is P=280-2(Q1+Q2) and the cost function is C1(Q1)=3Q1 and
C2(Q2)=2Q2
Find out the followings
1) Marginal revenue for both,
2) Reaction function for both,
3) Equilibrium output,
4) Equilibrium profits.
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