Cournot Competition: Best Responses

Two firms with the same marginal cost face demand P = 12 − (q1+q2). Each firm's best-response line shows its profit-maximizing output for every quantity the rival might pick. They cross at the Nash equilibrium: each firm is doing the best it can, given the other. Slide marginal cost and watch the equilibrium move.

Each firm's output
4.0
Total quantity
8.0
Market price
$4.00
Profit per firm
$16