Suppose we have a duopoly of a homogeneous product with demand Q = 10 – P/2. The cost function of each firm is C = 10 + q*(q+1).Determine the Cournot equilibrium price and quantity.

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A: Demand : P(Q) = 400 − 1/10Q P = 400 − 0.1Q Q=Q1+Q2 P = 400 − 0.1(Q1+Q2) P = 400 − 0.1Q1-0.1Q2 MC=10…

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