2) Suppose our duopolists face the market demand: P = 100 – 0.5 Q. The cost
function for firm 1 is TC1 = 5q1 and for the firm 2, it is TC2 = 0.5(q2)
2. (15 marks)
Using this information find equilibrium price, quantities, and profits if:
a. Duopolists were to behave as perfectly competitive firm
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