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There are two firms, we'll call them A and B.
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And these two firms, initially,
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before we start considering what we're actually going to talk about,
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initially they are playing Cournot competition.
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So two firms and they're playing Cournot competition.
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And we can imagine that they're producing fertilizer.
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And let's be specific here,
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let's assume that the prices in this market
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so this is the demand curve that they face.
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We'll assume that costs, marginal costs, c is equal to $1 a ton.
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So this is the price in dollars per ton, and the costs are $1 per ton.
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In a minute what we're going to do is we're going to