Long Answer 1 (Oligopoly). Enter all answers rounded to two decimal places but do not round intermediate values. Consider a duopolistic market with differentiated products. The cost functions for the two firms are estimated to be C (q1 ) = 50q, and C (q2 ) = 25q2, while the direct demand functions are estimated to be as follows: Firm 1: 91 (P1.P2) =4799 -2p1 + 1p2. Firm 2: 92 (P1.P2) = 4799 -2p2 + 1p1- where q1 is Firm 1's output, q2 is Firm 2's output, p, is Firm 1's price, and p2 is Firm 2's price. Using the information above, find the equilibrium prices and quantities under the Bertrand model. If the products in this market were instead undifferentiated, what would the equilibrium quantity for Firm 1 be if you again applied the Bertrand model? A. There is not enough information to answer this question. O B. Firm 1 would not produce because at the equilibrium market price, Firm 1 would apply the shut-down rule. O C. Firm 1 would produce half of the total market quantity because the two firms' products would be viewed as perfect substitutes and the firms would split the production equally. O D. Firm 1 would produce the same quantity found above because product differentiation is not a factor in the Bertrand model. Now find the equilibrium prices and quantities for differentiated products under the Cournot model. Hint: you'll need to find the inverse demand functions. P1 : . P2 : If theon than firms formed a mortal how mi lilibrium ? Click to select your answer(s). IMG_7572.JPG MacBook Air 20 F3 4 4 F Z Q W91 : ]. 92 :. If the products in this market were instead undifferentiated, what would the equilibrium quantity for Firm 1 be if you again O A. There is not enough information to answer this question. O B. Firm 1 would not produce because at the equilibrium market price, Firm 1 would apply the shut-down rule. O C. Firm 1 would produce half of the total market quantity because the two firms' products would be viewed as perfect O D. Firm 1 would produce the same quantity found above because product differentiation is not a factor in the Bertrand Now find the equilibrium prices and quantities for differentiated products under the Cournot model. Hint: you'll need to find P1: . P2:. 91 : . 92 :. If these two firms formed a cartel, how much would each firm produce in the market equilibrium? O A. The two firms would produce 2856.9 units each. O B. Firm 1 would produce 4824 units while Firm 2 would produce nothing. O C. Firm 1 would produce nothing while Firm 2 would produce 4824 units. O D. The two firms would produce 2412 units each. O E. The two firms would produce 3174.33 units each. Click to select your answer(s). IMG_7572.JPG MacBook esc F2 F3 FS 2 4 Q W E tab R T A ps lock S D F G