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Two firms in a Cournot duopoly produce quantities Q 1 and Q 2 and the demand...

Two firms in a Cournot duopoly produce quantities Q 1 and Q 2 and the demand equation is given as P = 80 - 2Q 1 - 2Q 2. The firms' marginal cost are identical and given by MCi(Qi) = 4Qi, where i is either firm 1 or firm 2.

a. Q1 = 80 - 4Q2 and Q2 = 80 - 4Q1.

b. Q1 = 10 - (1/4)Q2 and Q2 = 10 - (1/4)Q1.

c. Q1 = 80 - 2Q2 and Q2 = 80 - 2Q1.

d. Q1 = 10 - (1/2)Q2 and Q2 = 10 - (1/2)Q1.

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