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1. {4D points] Dligopoly Consider a city that is major tourist destination. Over the years a large number of companies have entered the marl-net to oer guided tours to tourists. The two larger companies, A and E, lobbied the government to impose a law to require companies to have a governmentissued License. After the law passed, the only two companies that managed to get a license were companies A and B. Thus, the demand for guided tours is given by: p = 1m o where Q = q\" +435, :1\" is the production of company rm A and up, is the production of rm B. The marginal cost of production is zero. But there is a xed oost of $511!. {a} [5 points} Write the prot flmction of each rm. {h} (11] points} Find the best response function of each rm. {d} {15 points} Find the CournotNash equilibrium production level, price and prots. {e} [ll] points} Find the jointprot production level. Calculate prots and compare them to your solution of part [c]