Two firms with the same constant marginal cost (MC=10) compete by choosing quantities simultaneously (Cournot competition). The inverse demand curve in this market is p=50−2Q. where Q=q1+q2. Let q1 and

Two firms with the same constant marginal cost (MC=10) compete by choosing quantities simultaneously (Cournot competition). The inverse demand curve in this market is p=50−2Q. where Q=q1+q2. Let q1 and q2 denote the output of firm 1 and firm 2, respectively. What is firm 1 's reaction (best response) function?

q1=10−0.5q2
q1=10+0.5q2
p1=10−0.5p2
p1=10+0.5p2

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