Two firms produce identical products.
The market price for total production quantity q is P (q) = 100 − 2 √q. Firm 1’s production cost is C1(q1) = q1 + 10, and firm 2’s production cost is C2(q2) = 2q2 + 5. Find the profit functions and the Nash equilibrium quantities of production and profits.
Two firms produce identical products.