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2) Two firms compete by choosing price. Their demand functions are Q1 =20 - P1 + P2 and @2 =20 + P1 - P2 where P, and P2 are the prices charged by each firm, respectively, and O, and O2 are the resulting demands. Note that the demand for each good depends only on the difference in prices; if the two firms colluded and set the same price, they could make that price as high as they wanted, and earn infinite profits. Their costs are given by C1 = 401 and C2 = 602. Suppose the two firms set their prices at the same time. a) Calculate the best response function (reaction function) for each firm. b) Calculate Bertrand Nash equilibrium. What price will each firm charge, how much will it sell, and what will its profit be