a) List the assumptions behind the Bertrand model with homogeneous products, including the assumption that the firms make about each other's behaviour. Explain the Bertrand paradox. [10] b) Does the Bertrand paradox apply when the firm's products are differentiated? Explain the reason for your answer briefly. [5] The demand functions for the products of two firms are: q. = 24-5p. + 2pz 92 = 24-5p, + 2p. Both firms have zero marginal costs of production. c) Calculate Firm 1's and Firm 2's best response functions. What are the equilibrium prices p, and p; ? [15] d) Graph the best-response functions. Make sure to label the functions and all intercepts. [10] e) Explain the reasons behind the shape of the best-response functions