Question: The inverse market demand in a homogeneous-product Cournot duopoly is \(P=\) \(100-2\left(Q_{1}+Q_{2}\right)\) and costs are \(C_{1}\left(Q_{1}\right)=12 Q_{1}\) and \(C_{2}\left(Q_{2}\right)=20 Q_{2}\).

1. Determine the reaction function for each firm.
2. Calculate each firm's equilibrium output.
3. Calculate the equilibrium market price.
4. Calculate the profit each firm earns in equilibrium.

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