(Game Theory question)Two firms are price-competing as in the standard Bertrand model. Each faces the market demandfunctionD(p) = 1000p. Firm 1 has constant marginal cost c1= 200, while firm 2 has the constantmarginal cost c2= 400. If one of the firms has the lower price, they capture the entire market, likethe standard model. However, when they charge exactly the same price, firm 2 gets 75 percent of thedemand, firm 1 gets the remaining quarter.

Q1. Draw the profit function 1(p1,p2) when p2= 600. (Mark sure to label all points of interest onall graphs: maximum values, axis crossings, points of discontinuity, axes labels)