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Question: 5 consider a version of the cournot duopoly game which...

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5. Consider a version of the Cournot duopoly game, which will be thoroughly analyzed in Chapter 10. Two firms (1 and 2) compete in a homogeneous goods market, where the firms produce exactly the same good. The firms simultaneously and independently select quantities to produce. The quantity selected by firm i is denoted q, and must be greater than or equal to zero, for 1-1, 2. The market price is given by p 2 sume that the cost to firm i of producing any quantity is zero. Further, assume that each firms payoff is defined as its profit. That is, firm is payoff is pqi, where j denotes firm is opponent in the game. Describe the normal form of this game by expressing the strategy spaces and writing the payoffs as func- tions of the strategies. 1- 92. For simplicity, as-

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