Question: help with a,b,c,d,e Take the following demand function for a duopoly market for Firm X and Firm Y: P = $1,500 SQ Assuming constant marginal
help with a,b,c,d,e

Take the following demand function for a duopoly market for Firm X and Firm Y: P = $1,500 SQ Assuming constant marginal cost for both rms of $375 and that market output is representec' by the output of Firm X and Firm Y. a) Calculate the output-reaction curves for Firms X and Y (show all workings) (4 marks) b) Calculate the prot maximising level of output for each rm and the Cournot equilibrium market quantity and price. (4 marks) c) Calculate the prot maximising level of output for Firm X assuming that it has rst mover advantage in this market and correctly anticipates the output reaction curve of Firm Y. (2 marks) d) Based on Part c) calculate the prot maximising level of output for Firm Y. (2 Marks) e) Based on Part c) and Part d) calculate the equilibrium output and price in the market. (2 marks)
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