Real-World Applicationshard
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Two firms compete in quantities (Cournot competition). The inverse demand function is P=150Q1Q2P = 150 - Q_1 - Q_2, where Q1,Q2Q_1, Q_2 are the quantities produced. Firm 1 has a constant marginal cost c1=30c_1 = 30 and Firm 2 has a constant marginal cost c2=45c_2 = 45. What are the Nash equilibrium quantities (Q1,Q2)(Q_1^*, Q_2^*)?