Question: please explain how to do each step, im not sure if I did c. correct? (12 points) Suppose that that firm 2 that invests in

please explain how to do each step, im not sure if I did c. correct?

(12 points) Suppose that that firm 2 that invests in a new technology that changes it cost 1 structure from firm 1. Market demand is still Q = 18 P, firm 1 still faces costs C1CQ1) = 50%, 1 and now firm 2 has costs, (32(02) = 50%. Consider a Cournot model again. a. What is firm 1's best response function? h. Set up firm 2's profit maximization and solve for firm 2's best response function. c. Find the equilibrium quantity for firm 1, firm 2, the market quantity, and price

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