I am currently struggling with an exercise and I hope you can help me.
These are the basic information:
The inverse demand curve is P=a-bQ, while there are four firms competing (Cournot) in this exercise.
The market price is given by 450, while q1=q2=q3=q4=75 (and therefore Q=300).
Profit function of firm 1 and 2: Profit1=(a-bQ)q1-q1²-5000 and Profit2=(a-bQ)q2-q2²-5000
Profit function of firm 3 and 4: Profit3=(a-bQ)q3-cq3 and Profit4=(a-bQ)q4-cq4
As you might see, the costs differ between firm1/2 and firm3/4.
I am missing the four values a, b and c, and I have no idea how to deal with this problem. Does anyone have any advice for me on how to proceed?