Question
Consider the three firms Cournot oligopoly with the following inverse demand function: P =100 – 20, – 2Q, – 203. The firms' cost functions are identical and are given by C(Q;) = 10 +-2Q;. Based on this information, firm 1, 2 and 3's reaction functions are: r1(Q2) = 24.5 - 0.5Q1 and r2(Q1) = 24.5 – 0.5Q2 and r3(Q1,Q2)
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