Question: can you please show WRITTEN work need help understanding please these are supposed to be the answers thanks! 1. Assume two companies, A and B,

 can you please show WRITTEN work need help understanding please these
can you please show WRITTEN work
need help understanding please
are supposed to be the answers thanks! 1. Assume two companies, A
these are supposed to be the answers
thanks!

1. Assume two companies, A and B, are duopolists who produce the same product. Demand for the products is given by the following linear demand, Where Qa and Qb are the quantities sold by the respective firms and P is the selling P=200-Qa-Qb price. Total cost functions for the two companies are, TCa=1500+55Qa+Qa^2 TCb=1200+20Q6+20b^2 Assume the firms act independently as in the cournot model. for each lion B. Determine Firm A, Firm B and industry profits at the equilibrium solution from A. 2. Assume the same firm form a cartel to act as monopolist and maximize total industry profits. A. Determine the optimum output and selling price for each firm. B. Determine Firm A, Firm B and industry profits at the equilibrium solution from A. C. Show that the marginal cost of the two firms are equal at the optimal solution in part A. 3. Compare the optimal solutions obtained in #1 and #2. a. How much higher (lower) is the optimal selling price when the two firms form a cartel to maximize industry profits compared to when they act independently? b. How much higher (lower) is the total industry output? C. How much higher (lower) are the total industry profits? In Class Problem Answers Value Act Independently Form Cartel Qa* 30 25.5 Qb* 25 21.5 55 47 Qtotal=Qa*+Qb* Price 145 153 Profit A 300 348.75 675 735 Profit B Total Profit 975 1083.75

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