Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function:
P = 600 - QC - QD
where QC and QD are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are
![2271_f4cabdcc-da42-43f1-a731-805c74290ab4.png](https://secure.tutorsglobe.com/CMSImages/2271_f4cabdcc-da42-43f1-a731-805c74290ab4.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 the total profits for each firm at the equilibrium output found in Part (a).