Question: Two companies (e and a)

Duopolists that produce same product identical. The linear demand function:

P = 600 - Qe - Qa

Where Qe and Qa are the quantities sold by each firm P is the selling price. Total cost function:

TCe = 25,000 + 100Qe

TCa = 20,000 + 125Qa

Using a Cournot model each firm assumes that the other won’t change the price

a. Determine Long-run equilibrium and selling price for each

b. Determine total profits for each at equilibrium