4. mutual best response Suppose a firm must determine a profit maximizing output quantity.

Let q denote this quantity. Selling price is given by
P(q) = 340 − 2q (i.e., selling price declines with quantity) and cost is given by C(q; P) = 100q. Determine an optimal output and profit for this firm.

Now explain the connection between this calculation and Example 10.4.