**Mathematical Economics** Q-1) An american firm and a british firm are the sole competitors in the european market for some homogenous good. Competition takes place as in the Cournot Model. Suppose the dollar appreciates with respect to the pound. Using reaction curve, analyse how this affect market share of each firm. Q-2) Suppose a foreign and a domestic firm compete in quantities in Turkish market. Using reaction curves, analyze how a government-imposed quota on the amounts the foreign firm can sell affects the equilibrium. Under what conditions if any, could the quota induce exit of the foreign firm