Consider the cournot duopoly model/ Managerial Economics
(Cournot Duopoly Revisited) Consider the Cournot duopoly model where the (inverse) demand is P (Q) = a Q. The two firms now have asymmetric marginal costs: c1 for firm 1 and c2 for firm 2.
(a) What is the Nash equilibrium if 0
(b) What is the Nash equilibrium if 0 a + c1?
