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The Calculus of Cournot and Differentiated Bertrand Competition Equilibria: Calculus Appendix Figure It Out: Question 1 of 4 Cowboy Pete's Ranch and Wily Western Ranch are two dude ranches in the Midwest. The ranches offer horseback riding, sightseeing along winding rivers, a campfire experience, and cabin lodgings. The demand curve for a night at Cowboy Pete's Ranch is given by =4007.5+5 where is the price charged for a night at Cowboy Pete's Ranch and is the price charged for a night's stay at the Wily Western Ranch. The demand curve for a night's stay at Wily Western Ranch is =600+2.55 The cost of providing a night at Cowboy Pete's is ()=2 Wily Western Ranch provides a more authentic (and therefore more costly to maintain?) Western experience for customers. The cost of providing a night at Wily Western Ranch is ()=22 Derive a price reaction function for each ranch. Round all values to two decimal places within the reaction function. The system is case sensitive: use a lower-case when entering the function.

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