3. Consider two firms producing differentiated products and competing on price choice. Their demand functions are given below 9, = 40 – 2 p, + P2 q2 = 40 – 2 pz + P, Their total costs are given as; TC, = 10g, TC, =10q; %3D

Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms:  - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. Question: Explain and draw the relationship between the zero-profit curve and the marginal cost curve for the two firms using the quantity schedule of the two firms and the relevant plots of equations (1) and (2) ? *Please draw diagram and answer asap*

wo firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB  (Note: qA = Firm A Output; qB =  Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms.  Market demand is given as Q = Y – 2P (where P = price and Q = quantity).  Select any value for X between [21 – 69] and any value for Y between [501 – 999].  Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following models:       (a) Cournot Model   error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward   Question Two firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB  (Note: qA =…

Could you answer the red highlighted part please