One of the Earliest Oligopoly Models,as Explained by Augustin Cournot,took

Essay

One of the earliest oligopoly models,as explained by Augustin Cournot,took the example of two firms that produced a homogeneous product: bottled spring water.Both firms faced zero marginal costs and a linear demand curve.Using this information,show that the Cournot equilibrium output is 2/3^rd of the perfectly competitive equilibrium output.