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Two fruit vendors are competing for business by posting their prices on their stalls. Vendor 1 has the cost function (1) = 41 and vendor

Two fruit vendors are competing for business by posting their prices on their stalls. Vendor 1 has the cost function (1) = 41 and vendor 2 has the cost function (1) = 72. Market demand is () = 30 where = 1 + 2. a. What is the demand function for firm 2? Is this the same as the demand function for firm 1? [4pts] b. What prices will firm 1 and 2 set in equilibrium? How many fruits will each vendor sell?

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