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The can industry is composed of two firms. Suppose that the demand curve for cans is P= 100-.5Q and the total cost function of each

The can industry is composed of two firms. Suppose that the demand curve for cans is P= 100-.5Q and the total cost function of each firm is TC = 2 + 15q.

  • b)If only one firm enters a new market, how much will each firm produce and will make the profit?
  • c)If both enter the new market, how much will each firm produce and will make the profit?
  • e)If these two firms collude and they want to maximize their combined profit, how much will the firm A produce? And Profit?
  • f)How much will the Firm B produce?
  • g)Is this collusion would work? Why or why not?
  • h)If the Firm A moves first, how much profit for each firm will change? Construct the game tree and find Nash EQ

Please include the work and a brief explanation so I can better understand

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