1. [8] Two gas stations are competing for business by posting their prices (Bertrand competition). Station 1 has the cost function C(q1) = 4q1 and station 2 has the cost function C(q2) = 5q2 where q1 and q2 are the number of litres sold by station 1 and station 2, respectively. Market demand is Q (p) = 40 - p where Q = q1 + 92. a. [4] Write the demand functions of the two firms. b. [4] How much will firm 1 charge for gasoline in a Bertrand-Nash equilibrium? Explain why this is the case