Discuss the below:
Q: Two companies (A and B) are duopolists that produce identical products. Demand for the products is given by the following demand function: P = 10,000 - 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: TCA = 500,000 + 200QA + .5QA2 TCB = 200,000 + 400QB + QB2 Assume that the two firms act independently as in the Cournot model (that is, each firm assumes that the other firm's output will not change). Determine the long-run equilibrium output for firm A.