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Cournot competition is an economic model describing a market where firms simultaneously compete by choosing the quantity of goods to produce and sell in the market. The stage game is one such that there are no fixed costs and constant marginal cost . The inverse demand function is . It is a static game, whereby an equilibrium is found where no firms unilaterally change their output level when the other firms produce the output levels assigned to them in the (purported) equilibrium.
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