Questions 11-13: There is a more general result about price competition that can be established. The result is the following: In any model of cluopoly price competition with zero costs ancl in which prices are quoted in clollar amounts, there is only Nash equilibrium such that each rm charges the lowest price at which it makes a positive prot, that is, one clollar. Suppose that the demand curve is written as Q = D( p), where D(p) is a downward-sloping function. Denote the monopoly price pm and suppose that it is 2 dollars or greater. 11. Show that if the rival rm charges a price above the monopoly price pm, then the best response is to charge the monopoly price. 12. Show further that if the rival rm charges a price p (:> 1) at or below the monopoly price, then the best response is to charge a price below p. (Hint: Can you show that charging a price p 1, for example, is more protable than charging p or above?) 13. Conclude from the preceding arguments that the only Nash equilibrium price at which rms make prots must be, again, 1 dollar for each rm