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1. Given reaction function of duopolist A, QA = (12-QB)/2 (1) and reaction function of duopolist B, QB= (12-QA)/2 (2), determine Cournot solution, that is to compute QA and QB by substituting (1) into (2).

2. Given following total cost schedule of firm, (a) deduce total fixed cost and total variable cost schedules of firm, and from them deduce average fixed cost, average variable cost, average total cost, and marginal cost schedules of the firm.

Q 0 1 2 3 4 5
Tc $30 50 60 81 118 180

Microeconomics, Economics

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