4. Two rms A and B produce goods A and B, respectively. The linear demands for the two goods are, respectively, QA =100 - 4PA +1.5PB QB = 120 2PB + 0.5m Production costs are constant but not equal: LACA = LMCA = $2 LACE = LMCB = $3 - Using calculus, derive the equations for best response curves. I Sketch a graph of the two bestresponse curves. Label both axes and response curves. - If firm A expects firm B to set its prices at $213, what is firm A's best response? If firm E predicts firm Awill price good A at $36, what is firm B's best response? I What is the Nash equilibrium price and quantityr for each firm? - How mud: profit does each firm earn in Nash equilibrium? - If firm A and firm 13 set prices of $22 and $35 respecvel}: how much profit does each firm earn? My don't they choose these prices then