Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Each firm will produce

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In a Cournot duopoly with zero marginal cost, each firm assumes the other's quantity as given and decides its quantity to maximize its profit. The equilibrium quantity for each firm in this setup is a/3b, as the total quantity Q in the market is split between the two firms, leading to each firm producing a third of the monopolistic output.

Suppose Two Cournot Duopolist Firms Operate at Zero Marginal Cost