Firm A and Firm B sell identical goods Total market demand for the good is: Q(P) = 35,100 - 45P The inverse demand function is therefore P(QM) = 780 45 Q = 780 - 0.02222QM QM is total market production (i.e., combined production of firm's A and B. That is: QM = QA + QB As a result, the inverse demand curve for each firm is: P(QA, QB) = 780- 1 1 45 QA 45 QB = 780 - 0.02222QA - 0.02222QB Unlike the example in class, the two firms have different costs. TCA (QA) = 400QA TCB (QB) = 260QB