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4. (3 points) Two firms produce a homogeneous good at price p. Total production is Q = q1 + q2 where for j = 1,

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4. (3 points) Two firms produce a homogeneous good at price p. Total production is Q = q1 + q2 where for j = 1, 2, q, is the production of firm j. The inverse demand function is p = D (Q) such that D (Q) = Q-, (5) where = > 1. For j = 1, 2, the total cost function for firm j is TC (q;) = cq; where C>O. (a) Set up each firm's maximization problem. (0.5 points)

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