... Q=q1+q2
TC1=6q1
TC1=0.2q22.Given these answer the questions that follow
A.Determine Isoprofit function of Firm 1
B.Determine Isoprofit function of Firm 2
C.Determine Reaction function of Firm 1
D.Compute Reaction function of Firm 2
E.Compute equilibrium output of each duopoly SHOW ALL THE STEPS CLEARLY
2 . Suppose that an industry consists of two firms that produce a homogeneous product.
Suppose that each firm decides how much to produce.the industry demand equation is
P=250-2Q, Q=Q1+Q2 Where Q1 and Q2 represents the output of Firm 1 and
Firm 2, respectively .the total cost equations of the tow firm are
TC1 = 2Q1
TC2 = 5Q2
A.calculate equilibrium price profit maximizing output levels and profits for each firm if firm is a sophisticated leader.
B. Calculate equilibrium price profit maximizing output levels and profits for each firm if these two firms agree to form a cartel maximizing their join profit.
C. Calculate equilibrium Price profit maximizing output level and profits for each firm if the low cost firm is selected as a price leader. SHOW ALL THE STEPS CLEARLY