Question 2: Differentiated Products Two firms, A and B, are located at either end of a one mile stretch of road. There are 100 consumers in the town and the number of consumers that each firm sells to depends on the price they set and the price that their competitor sets. Suppose that demand for A and B is given by: QA=50_SPA+5PB Elnd QBZSO_SPB'l'SPA Furthermore, assume that both firms have constant marginal cost equal to 40 and no fixed costs. (a) What is the difference between a differentiated product and the Cournot model of competition? What a real-world example of differentiated products? (b) What is the profit function for firm A? (c) What is firm A's best response function? (d) What will be the Nash equilibrium prices that A and B will set