(a) Consider a homogeneous goods industry where two rms operate and the linear demand is given by p(y1 + y2 ) = a - b(y1 + y; ), where p is the market price, and y1 (yz) is the output produced by rm 1 (2). There are no costs for firm 1 or firm 2. Derive the best responses (reaction curve) for rm 1 and rm 2. Explain the term best response (reaction curve). Illustrate the best responses in a diagram