Y7

1. a. Two oligopoly firms, Busy-Time Inc. (B) and Home Internet Service (H), produce differentiated Internet service and compete over prices in a one-shot game. The quantity demanded for firm B is qB = 96 - 2pB + pH, the quantity demanded for firm H is qH = 96 - 2pH + pB, where qB, qH 0 and pB, pH 48. Marginal cost (c) is 12 for both firms, and fixed costs are zero. Calculate the equilibrium prices for each firm. (Please show all mathematical steps)

b. Following on from question a directly above, calculate the equilibrium quantities for each firm. (Please show all mathematical steps)

You will get downvoted if you do not show all mathematical steps!