Question: The inverse demand for tea is given by P = 8- 0.04 Q , where P is the price per a gram of tea and

The inverse demand for tea is given byP= 8- 0.04Q, wherePis the price per a gram of tea andQis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given byC1=0.01q1^2, whereq1is the number of grams of tea it brings to market. Shop 2's cost function is given byC2=0.01q2^2, whereq2is the number of grams of teait brings to market. Given that the two shops compete by setting output (Cournot), answer the following.

what isthe equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce______grams of tea and shop 2 will produce________grams of tea. The equilibrium market price is ________

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