Question: 1 . ( 1 0 points ) Two firms compete in one market. Their cost functions are C 1 ( y 1 ) and C

1.(10 points) Two firms compete in one market. Their cost functions are C1(y1) and C2(y2) respectively, with increasing marginal cost. Products are homogeneous, so the total market supply is Y = y1+ y2. The downward sloping market (inverse) demand function is P = P (Y ).
(a) If these two firms compete following Cournot competition, write down their optimization problem and the associated first order conditions (no need to solve it).

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