Suppose a market featuring two goods that differ in quality (vertical differentiation). Good 1 is of quality S1 and good 2 is of quality 32, with 3, > 81. There is a mass of n - 1 consumers, of different types, identified by a taste parameter 0 ~ U11:21 (A random variable distributed uniformly on the interval bounded below by 1 and bounded above by 2) As usual, we assume that consumers can purchase either one or zero units, so the choice is from which firm to buy A consumer's ytility function is given by: u(O) = 0.8-pi if it buys one unit of good with quality 8, (Utility is zero if the consumer buys nothing). The cost function that each firm faces is given by the following expression: C(q) = C-5.4 Assume the following parameter values: $1=1, 82 = 2, c=0.2 (Hint: Under this parameter values, there will be full coverage, so you don't need to worry about that) D Question 18 6 pts What is the slope of the firms' reaction functions (both functions have the same slope) 01 O 1.5 O2 O 0.5