could you also tell me the payoff if possible?

3. A town has two food stores, Store 1, which sells Italian cheese, and Store 2, which sells French cheese. The two store have to set their prices individually and simultaneously. If Store I's price is Pi (dollars per pound of cheese) and Store 2's price is P2 (dollars per pound of cheese), their respective sales, Q1 (thousand pounds of cheese) and Q2 (thousand pounds of cheese), are given by the following equations: Q1 = 16 - 2P1 + P2; Q2 = 36 + P1 - 2P2. It costs $ 2 to make a pound of cheese. This means that, given the prices of the two stores (P1, P2), Store I's profit function is #1(PI, P2) = (P - 2)(16 - 2P, + P2), and Store 2's profit function is 72 ( P1, P2) = (P2 - 2)(36 + P1 - 2P2). (a) If Store 2 charges price P2, which price will Store 1 charge? Find the best reply function of Store 1. Explain your answer. (5%) (b) If Store 1 charges price Pi, which price will Store 2 charge? Find the best reply function of Store 2. Explain your answer. (5%) (c) Plot the best reply functions of the players in one figure. Mark which curve is Store I's best ply and which is Store 2's best reply. (10%) (d) Find the Nash equilibrium. Explain your answer. (5%)