"Say you are in a Cournot oligopoly and you compete with Plano. You both choose quantity simultaneously, and then the price is determined. Like you, Plano has a marginal cost of $100 for every plane produced. The demand is P = 1000 – Q1 – Q2. Q1 is your output and Q2 is Plano’s output. What quantity of airplanes will you produce? What quantity will Plano produce? What will be the market price of airplanes? How much will each of you earn in profits? (5 points)"
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"Say you are in a Cournot oligopoly and you compete with Plano. You both choose quantity simultaneou...
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