Quantity Competition Assume that firms compete by choosing output levels If firm 1 produces y, units and firm 2 produces y2 units then total quantity supplied is y1+ y2. The market price will be p(y,+ y2) The firms total cost functions are C,, and c2y2)Quantity Competition Assume that firms compete by choosing output levels. If firm 1 produces y1 units and firm 2 produces y2 units then total quantity supplied is y1 + y2 . The market price will be p(y1+ y2 ). The firms’ total cost functions are c1 (y1 ) and c2 (y2 )