How would the$$ Intel$-$AMD equilibrium in the Solved Problem $13\mathrm{.}2$ change if AMD faced the same demand function as$$ Intel?

Part $2$

Intel and Advanced Micro Devices$($AMD$)$ are the only two firms that produce central processing units$($CPUs$),$ which are the brains of personal computers. Both because the products differ physically and because$$ Intel's advertising$$ "Intel Inside" campaign has convinced some consumers of its$$ superiority, consumers view the CPUs as imperfect substitutes. $$ Consequently, the two$$ firms' inverse demand functions$$ differ:

p Subscript Upper ApAequals$=490490$minus$1010$q Subscript Upper AqAminus$66$q Subscript Upper IqI

and

p Subscript Upper IpIequals$=490490$minus$1010$q Subscript Upper IqIminus$66$q Subscript Upper AqA$,$

where price is dollars per$$ CPU, quantity is millions of$$ CPUs, the subscript I indicates$$ Intel, and the subscript A represents AMD. Each firm faces a constant marginal cost of

mequals$=$$$3535$

per unit. $($For simplicity, we will assume there are no fixed$$ costs.$)$ Solve for the

Cournot equilibrium

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quantities and prices.

Part $3$

The Cournot equilibrium quantities are

q Subscript Upper AqAequals$=17\mathrm{.}517\mathrm{.}5$

million CPUs

and

q Subscript Upper IqIequals$=17\mathrm{.}517\mathrm{.}5$

million CPUs.$($Enter numeric responses using real numbers rounded to two decimal$$ places.$)$

Part $4$

The Cournot equilibrium prices are

p Subscript Upper ApAequals$=$$enter your response here

and

p Subscript Upper IpIequals$=$$enter your response here.