1) The market demand curve for mineral water is P=a-hQ. Suppose that there are two firms that 2) 3) produce mineral water, each with a constant marginal cost of c dollars per unit. Fill in the enuies for each of the following duopoly models. a) Bertrand model (Price competition). h) Cournot model (quantity competition). c) Collusion. Model Q1 Q2 Q P (Prot margin}1 (Prot margin}2 Bertrand Cournot Collusion Write up your analysis, and compare your answers. In which model, firms earn the highest profit margin? Consider a duopoly in which rms produce heterogeneous products. Demand functions for rms 1 and 2 are given by Pa? )= 35-131 + P2 1 P552 )= ss-P2 + P1 2 Suppose that the marginal cost functions of firms 1 and 2 are given by MC1(Q1]=MC2( Q2] =5. What price should each firm charge to maximize its prot? Show your calculation precisely. Consider a duopoly in which firms produce differentiated products. Demand curves are given by: Q1=75P1+ 0.5P2 Q2=75P2+ 0.5P1 Marginal cost is negligible for both firms. Calculate their optimal prices