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6. Consider a duopoly with product differentiation in which the demand and cost functions are 91 =88 - 4p, + 2p2 C, = 10q1 and

6. Consider a duopoly with product differentiation in which the demand and cost functions are 91 =88 - 4p, + 2p2 C, = 10q1 and 92 = 56 + 2p1 - 4P2 C2 = 892 for firms I & II respectively. Derive the price reaction functions for each firm on the assumption that each maximises its profits with respect to its own price. Determine the equilibrium values of price, quantity and profit for each firm

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