Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function:
p = 200 - QA - QB
where QA and QB are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are
![382_04a50d0a-a29e-4082-8fa2-247262f4d4dd.png](https://secure.tutorsglobe.com/CMSImages/382_04a50d0a-a29e-4082-8fa2-247262f4d4dd.png)
Assume that the firms act independently as in the Cournot model (i.e., each firm assumes that the other firm's output will not change).
a.Determine the long-run equilibrium output and selling price for each firm.
b. Determine Firm A, Firm B, and total industry profits at the equilibrium solution found in Part (a)