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The only two brewers in a small town compete in the following game. First Alacrity Ales brews, which decides the quantity of beer that

 

The only two brewers in a small town compete in the following game. First Alacrity Ales brews, which decides the quantity of beer that Alacrity will be able to sell. Brown Beer knows how much Alacrity brewed and then brews their batch, determining how much beer Brown will be able to sell. Costs are CA = q and Caq while the demand for locally brewed beer is D = 16 - P. If Alacrity brews QA = 4, what quantity maximizes B's profit? The only two brewers in a small town compete in the following game. First Alacrity Ales brews, which decides the quantity of beer that Alacrity will be able to sell. Brown Beer knows how much Alacrity brewed and then brews their batch, determining how much beer Brown will be able to sell. Costs are CA = q and Caq while the demand for locally brewed beer is D = 16 - P. If Alacrity brews QA = 4, what quantity maximizes B's profit?

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