Hale's One Stop Gas and Auto Service competes with Murray's Gas and Service Mart. The local demand is given by: Hale's marginal cost function is:
Murray's marginal cost function is:
Given the demand relationship above, Hale's marginal revenue function is:
Determine Hale's reaction function. Murray's marginal revenue function is:
Determine Murray's reaction function. What is the Cournot solution?
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