# Consider a homogeneous product duopoly where each firm initially produces at Consider a…

Consider a homogeneous product duopoly where each firm initially produces at

Consider a homogeneous-product duopoly where each firm initially produces at a constant marginal cost of $200 and there are no fixed costs. Determine what would happen to each firm’s equilibrium output and profits if firm 2’s marginal cost increased to $210 but firm 1’s marginal cost remained constant at $200 in each of the following settings:

a. Cournot duopoly.

b. Sweezy oligopoly

Consider a homogeneous product duopoly where each firm initially produces at