STEP BY STEP| VOL 1| How to Obtain Reaction Function & Nash Equailibrium in Cournot Game

The inverse demand function in oligopoly market is p(Q)=50-2Q while the cost function for firm 1 and 2 are the same at c(q)=10+2q

i. Obtain reaction functions for each firm in Cournot game.
ii. Draw reaction functions graph for both firms with firm 2 in y-axis.
iii. Obtain Nash equilibrium quantity, price and profit for each firm in Cournot game.
iv. Obtain the total quantity and profit in oligopoly market.

This video is the extend from my previous tutorial video on cartel’s profit maximization problem
Volume 1: https://youtu.be/KQDhsCB8Pe0
Volume 2: https://youtu.be/MjQ8QqsQ6Bk

and you may check out my previous tutorial video on how to solve Marshallian demand function based on given direct utility function.

STEP BY STEP | VOL 1 | Marshallian Demand Function: https://youtu.be/f-d5x7JnQ5E
STEP BY STEP | VOL 2 | Marshallian Demand Function: https://youtu.be/y165UFbj0Ak
STEP BY STEP | VOL 3 | Marshallian Demand Function: https://youtu.be/Gm2MZagNMhs

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