Farmer Andy and Farmer Betty are the only two farmers that grow heirloom tomatoes for sale at the local farmer's market and compete as Cournot duopolists. The inverse demand curve for heirloom tomatoes at the market is P = 12 - Q, where P is the price per pound of tomatoes and Q is the number of pounds of tomatoes in hundreds per week; Q = qAndy + qBetty. Both Andy and Betty have a marginal cost of growing tomatoes of $6 per pound.
Using this information, we can derive Andy's and Betty's reaction curves:
qAndy = 3 - 0.5 qBetty
qBetty = 3 - 0.5 qAndy
First, use the line drawing tool to draw each Andy's and Betty's reaction curves. Label them R_Andy and R_Betty as appropriate. Then, using the double drop line drawing tool , identify the Nash Equilibrium quantity of tomatoes for Andy and Betty. Label the Nash Equilibrium point NE.