Explain clearly

Problem lit Two technology firms are located in an office building in suburban Melbourne. They do not compete in the product market, but both use the building's internet capacity. The building is serviced by the National Broadband Network using fibre-to-the-node technology, so it becomes congested easily. Each firm chooses it's intensity of internet use: x, for Firm 1 and x, for Firm 2. Each firm's profit depends on both firms' intensities T1 = X1 (280 - 2x1 - x2) na = X2 (280 - 2x2 - x1) a. Suppose the firms make their choices simultaneously. Find Firm 1's best-response function, then find both firms' equilibrium intensity choices For parts b - c, suppose instead that Firm 1 makes its choice first, and this choice is observed by Firm 2 before making its own choice. b. Find Firm 2's equilibrium strategy. (Hint: remember what a strategy is, in a sequential-move game!) c. Find both firms' equilibrium intensity choices. d. Calculate the firms' profits in (a), and their profits in (c). Is there a first-mover advantage in this situation, or a second-mover advantage, or neither? Briefly (1 - 2 sentences) explain your answer. (3 +2 + 4 + 3 = 12 marks) NOTE: Please clearly label each blank piece of paper with your Student ID and this problem number (for example, 'Problem III ) and write your response to this problem on your blank piece of paper. You'll have time at the end of your exam to upload a photograph of your