Question: 10 points Save Answer QUESTION 4 Consider the following duolopy market, The firms produce differentiated goods. The demand for good i is q; = 10

10 points Save Answer QUESTION 4 Consider the following duolopy market, The firms produce differentiated goods. The demand for good i is q; = 10 - P; + pj . Firms do not face any fixed costs. For firm 1, per unit cost of production is 4, for firm 2 per unit cost of production is 2. The best response functions are: O 14 + P2 2= 14 - P1 P1= 2 2 O 14+ P2 12 + P1 P1= 2 =,P2= 2 O 2 ,P2 = 12 + P1 p1= 12 + P2 2 O p1= 12 + P2 , = 14 + P22 2 10 points Save Answer QUESTION 5

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