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Chapter 12 In Class problems 1. Assume two companies, A and B, are duopolists who produce the same product. Demand for the products is given by the following linear demand, P=200-Qa-Qb Where Qa and Qb are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are, TCa=1500+55Qa+Qa^2 TCb=1200+200b+20b^2 Assume the firms act independently as in the cournot model. A. Determine the long run equilibrium output and selling price for each firm. B. Determine Firm A, Firm B and industry profits at the equilibrium solution from A