Question: I am having issues understanding these assignments. Would you please add commentary for your rational if possible. Thank you! 1.-There are only two firms in
I am having issues understanding these assignments. Would you please add commentary for your rational if possible. Thank you!

1.-There are only two firms in the market, Firms A and B, producing differentiated products. Specifically, the demands for the two firms' products are given by qA = 30 -2pA + ps and qs = 15 -2ps + PA, where p; denotes the price charged by Firm / and q denotes the resulting number of units that will be purchased from Firm i. Each firm can produce as much as it chooses, at zero marginal cost. The firms compete in prices. (a) Draw the two firms' reaction functions in a diagram with p, and p2 on the axes. (b) (Using calculus) Determine the equilibrium prices and quantities. (c) Now suppose firms choose quantities, instead of prices. Obtain the system of inverse demand functions, and then the equilibrium choices of output, and compare the results with what you obtained in (b)
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