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Hello, this is the first part of the test stated as part a, I need a solution for this part, please 1 . Suppose an

Hello, this is the first part of the test stated as part a, I need a solution for this part, please

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1 . Suppose an industry has a duopoly structure. Duopolist 1 (D1) has a cost function given by: .../100 c,(y,)=(y,)? for y,20 Duopolist 2 (D2) has a cost function given by: C2(y,)=(y2)2 for y,20 Denoting total output produced in the industry by y =(y1 + y2), the inverse demand function for the goods produced in the industry is given by: p=100-y The best response function of duopolist 1 (D1) is presented below. Given D2's quantity Best response of D1 MR=MCD1's D2's output (y2) (y1) For D1 Profit profit 0 25 50 1250 0 10 22.5 45 1012.5 575 15 21.25 42.5 903. 125 731.25 20 20 40 800 800 25 18.75 37.5 703.125 781.25 30 17.5 35 596.75 675 a) (10 points) What will be duopolist 2's (D2) best response function like? Please complete the following table. Alternatively,_you can derive the best response function for D1 and D2 by solving each duopolist's profit maximisation problem. Given D1's quantity Best response of D2 MR=MC D1's D2's output (y1) (y2) For D2 Profit profit 0 50 10 45 15 42.5 20 40 25 37.5 30 35

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