Question: 1. (5 points) Take the standard Cournot model with 2 firms, I={1,2}, linear inverse demand P(Q)= 2aQ (note it's slightly different from class), but with

1. (5 points) Take the standard Cournot model with 2 firms, I={1,2}, linear inverse demand P(Q)= 2aQ (note it's slightly different from class), but with a quasi-fixed cost of (2Fi)2 if any production takes place, that is iI : ci(q)={cq+(2Fi)20ifqi>0ifqi=0. Assume that (F1)2>(F2)2>0. (c) On a separate graph, draw B2(q1) assuming that F2(0,22ac). 1. (5 points) Take the standard Cournot model with 2 firms, I={1,2}, linear inverse demand P(Q)= 2aQ (note it's slightly different from class), but with a quasi-fixed cost of (2Fi)2 if any production takes place, that is iI : ci(q)={cq+(2Fi)20ifqi>0ifqi=0. Assume that (F1)2>(F2)2>0. (c) On a separate graph, draw B2(q1) assuming that F2(0,22ac)
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