A very simple Cournot model has been used to construct this figure.
Q - Quantity of production
P - Price
Π - Profit
MONOPOLY:
P = 2 - Q (linear demand curve)
Cost of production = 1
Π = (1 - Q)*Q
DUOPOLY:
Π(i) = [1 - (Q(1) + Q(2))]*Q(i)
i = 1 or 2
