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Consider the Cournot competition between two firms with different marginal costs. For firm 1, let the cost function be: C1(q1)-3*q1 For firm 2. let the cost function be: C2q2)-6q2 The inverse demand function is: P(Q)-12-Q. where Q=q1+q2 In this game, write down the profit functions for firm 1 and firm 2 (as functions of q1 and q2). Then, find the Nash equilibrium quantities for firm 1 and firm 2. In the NE, which firm produces more: the one with the low or the high marginal cost? Note: To get credit, you need to show your calculations and explain your answer.
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Consider the Cournot competition between two firms with different marginal costs. For firm 1, let th...
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