In a Nash-Cournot equilibrium where firms produce identical products with unequal costs,

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In a Nash-Cournot equilibrium, firms produce output where marginal cost equals marginal revenue. Since the firms have identical products, they will charge the same price. However, the firm with lower costs will have a lower marginal cost and, therefore, a higher profit margin, so it will produce more output to maximize its profits.

In a Nash-Cournot Equilibrium Where Firms Produce Identical Products with Unequal