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Suppose there are two firms operating in a market. (Best Response Function) Suppose there are two firms operating in a market. The firms produce identical

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Suppose there are two firms operating in a market.

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(Best Response Function) Suppose there are two firms operating in a market. The firms produce identical products. The marginal cost for each firm is constant at MC = 1. There are no Fixed Costs. Also, the market demand is given by P = 50-1Q, where Q= q1 + q2 is the total industry output. The following formulas will be useful: If market demand is given by P = a -bQ, then MR1 = a - 2bq1 - bqz MR2 = a - bq1 - 2bq2 Assume the firms choose their quantities simultaneously. If Firm 2 chooses q2 = 3, how much output should Firm 1 produce to maximize its profit? Round your answer to 4 decimal places if necessary

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