Question: question is attached below Consider a duopoly in which both rms produce the same good and want to maximize prots. Each rm can choose how

question is attached below

Consider a duopoly in which both rms produce the same good and want to maximize prots. Each rm can choose how much to produce, qi Z 0, at production cost g. The demand curve is given by P = max{0, 50 362}, where Q = q1 + Q}. (a) Suppose rms choose their quantities simultaneously. (i) Derive each rm's best response function, showing the steps. Remember that rms must produce a nonnegative quantity.(10 POINTS) (ii) Solve for the unique Nash equilibrium. Show your working.(10 POINTS)

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