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The geegaw industry consists of two Cournot competitors producing an identical product. The inverse demand equation...

The geegaw industry consists of two Cournot competitors producing an identical product. The inverse demand equation is P=591-4Q.

The total cost equations of the two firms are:

TC_1=15Q_1

TC_2=31Q_2.

a. Determine the total revenue equation for each firm.

b. What is the reaction function of each firm?

c. What is the Cournot-Nash equilibrium level of output?

d. What is the market-determined price of geegaws?

e. Calculate each firm’s total profit.

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