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A function is a set of mathematical operations performed on one or more inputs (variables) that results in an output. For now, functions will take one or more real numbers as an input, and return a numerical output. In more advanced classes you'll learn about far more complex functions! However, a simple function might return the input plus one.

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Substituting qA = 76 in firm B’s reaction function enables you to solve for qB. Thus, in the profit maximizing Cournot duopolist, firm A, produces 76 units of output while firm B produces 48 units of output. In the Cournot duopoly model, both firms determine the profit-maximizing quantity simultaneously. Increasing and Decreasing Functions Increasing Functions. A function is "increasing" when the y-value increases as the x-value increases, like this:. It is easy to see that y=f(x) tends to go up as it goes along.