c is a constant. You're given the marginal cost function. You can calculate the cost function from that!You just have to write down the optimisation problem. (In the followup question, you have toprove that a solution to the optimisation exists.As for feasible set - thats upto you to decide. Whatever your choice, you ultimately need to show that the solution exists. And in the next question, you've to find the critical points of the optimisation exercise you've written down!the market price=price of firm1=price of firm2Each firm has a marginal cost of c which is less than 1.

(ii) (4+8+8 PTS) Consider a market with demand p = 1-q and two firms, so that the total quantity is q = q1 + 92. Each firm has a marginal cost of c