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ondition is given by: 100— 2y1— y2=0 and 100— 2y2— y1=0(since firm 1 and 2’s marginal costs are both zero), so we can get the Cournot equilibrium amount of output for each firm as (100/3 100/3) 3023004027 李滔 Problem (d) Calculate the carter amount of output for the industry. ? Solution: As we can write down the industry profit function ? ? 100P Y Y??? ? ? ?12 0C y C y??1 2 1 2 1 2( , ) ( ) [ ]y y p y y y y? ? ? ?1 2 1 2( 10 0 ) ( )y y y y? ? ? ?? In order to get the maximize industry profits,.,the ? just differentiating it with respect to ,which gives us the equation: 1 , 212m a x ( , )yy yy?1y121 2 1 21( , ) ( ) ( 1 0 0 )yy y y y yy?? ? ? ? ? ? ??12100 2 2yy? ? ?? Because the firstorder condition equals zero