Respuesta :
In the cournot equilibrium, each firm produces 3 units and the price is 4.
Cournot opposition is an economic version used to explain an industry shape wherein businesses compete on the quantity of output they may produce, which they determine independently of every other and at an identical time.
The primary Cournot assumption is that every company chooses its amount, taking as given the number of its competitors. The ensuing equilibrium is a Nash equilibrium in quantities, referred to as a Cournot (Nash) equilibrium.
As soon as you already know the most appropriate call for optimal sales for the market as an entire, you can now calculate the factor of equilibrium for both employer's manufacturing, disregarding any collusion among the two using this method: π = P(Q) q − C(q).
Let the output of firm A be QA and the output of firm b is QB
where Q=qa+qb
o, p=10-Q
p=10-qa-qb
Given TC=2+q
Marginal Cost=MC=dTC/dq=1
Let us calculate the best response function in the case of A
Profit of A=Ra=TRa-TCa=(10-qa-qb)*qa-MC*qa=10qa-qa2-qaqb-qaqb=9qa-qa2-qaqb
Put dRa/dqa=0 for profit maximization
dRa/dqa=9-2qa-qb=0
qa=(9-qb)/2=4.5-0.5qb
Now
Let us calculate the best response function in the case of B
Profit of B=Rb=TRb-TCb=(10-qa-qb)*qb-MC*qb=10qb-qaqb-qb2-qaqb=9qb-qaqb-qb2
Put dRb/dqb=0 for profit maximization
dRb/dqb=9-qa-2qb=0
qb=(9-qa)/2=4.5-0.5qa
Put qa=4.5-0.5qb
qb=4.5-0.5*(4.5-0.5qb)=4.5-2.25+0.25qb
qb=2.25+0.25qb
0.75qb=2.25
qb=2.25/.75=3
qa=4.5-0.5qb=4.5-0.5*3=3
p=10-(qa+qb)=10-(3+3)=4
So, in the case of Cournot equilibrium, each firm produces 3 units and the price is 4.
Learn more about Cournot here https://brainly.com/question/13147542
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