4. There are two sport apparel companies in the market: Checks and Stripes. The market demand for sneakers is described be the function Q(p) = 80 2p where Q is the total industry output of sneakers. The two companies have the cost functions CCh(th) = qgh + 2401 and CStCCISt) = '13:: FESPECUVE'IV- If the firms are competing on quantity: a. Write the best response function of each one. [8pts] b. C. If the firms move simultaneously, what are the equilibrium profits of each firm? [6m] Suppose the CEOs of the two firms come to the realization that if they form a cartel, they would each be better off. What will the firms' profits be under a collusive arrangement? [10pts] If the two firms interact only once, is this a stable arrangement? Show how you came to your conclusion. [4pts]