8 Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demandfunction:P=600-Qc-QDwhere Qc and Qo are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies areTCC=25,000+ 1000cTCD20,000+ 125QpAssume that the firms act independently as in the Cournot model (l.e., each firm assumes that the other firm's output will not change).For Company C, the long-run equilibrium output isand the selling price is $For Company D, the long-run equilibrium output isand the selling price is $At the equilibrium output, Company C earns total profits of 3, and Company D earns total profits of S

Economic equilibrium is a situation or state wherein financial powers are adjusted. Essentially,…

are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are +1000c TCD=20,000+ 125QD firms act independently as in the Cournot model (l.e., each firm assumes that the other firm's output will not change). the long-run equilibrium output is and the selling price is $ the long-run equilibrium output is and the selling price is $ . m output. Company C earns total profits of and Company Dearns total profits of S