Solve clearly..

Two firms. AbleCow and Betsy's Pride, are competing in the market for milk in Lean City. AbleCow firm sells only 2 percent milk, while Betsy's Pride sells only skim milk, which is 0 percent milk-fat. There is a measure of 100 consumers (assuming they are divisible) in Lean City who have varied taste for milk. Specifically, consumers' ideal percentage of milk-fat is uniformly distributed between 0 and 2. Consumers value their ideal percentage milk- fat milk at $12 per litre. For other milk, they are willing to pay $2 less for each percentage point that milk differs from their ideal. The two firms set prices simultaneously. The cost of milk for both firms is $2 per litre. Only one-litre cartons of milk are available. Consumers buy at most 1 litre of milk. Note: Input numerical answers only. Do not input notations such as "$" and ",". For fractions such as one-half, write it as 0.50 rather than 1/2. Please keep 2 decimal places in your answers whenever possible. a) [1 mark] Suppose the price of AbleCow (p ) is $1 and the price of Betsy's Pride's (p, ) is $5, the demand of AbleCow is 75 b) [2 marks] The best reponse function of AbleCow is p 0.5 c) [1 mark] The equilibrium prices of this game is p Pb d) [2 marks] The profit of each firm is 36.8 d) [2 marks] The consumer surplus is Please answer all parts of the