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In a Oligopol there is two companies that produces hetrogene goods and a participating in bertrand compition demand are given with (see picture q1 and

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In a Oligopol there is two companies that produces hetrogene goods and a participating in bertrand compition demand are given with (see picture q1 and q2). a>0 in company q1

a) Extract the FOC and show in detail that the best response functions functions are (see picture).

I am a bit stuck on this question, thanks in advance.

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1 + 20 + 1+20 P2 10 + 5p1 PI (P2) 2 (a + 1) og p2 (PI) = 1291 (P1, P2) = 2 - ap1 + p2 og C1 (q1) = 9192 (P1, P2) = 2 - 2p2 + p1 0g C2 (92) =

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