(Solved): Question-4 The inverse demand for an oligopoly market with an identical product is given by \[ P=4 ...

Question-4 The inverse demand for an oligopoly market with an identical product is given by \[ P=428-4 Q \] Two firms are serving the market with identical marginal cost equal to 26 . Let \( \boldsymbol{q}_{1}, \boldsymbol{q}_{2} \) denote the output for firm 1 and 2 respectively. Q-4-a What is firm 1's profit function Q-4-b What are the reaction function of the firms? Q-4-C Are quantities strategic substitutes or complements Q-4-d Solve for the equilibrium quantities Q-4-e Solve for the equilibrium price Q-4-f what are the profits for firm and 2 Q-4-g What is Consumer surplus Q-4-h What is the total producer surplus Q-4-i Now suppose firm 1's cost structure has changed. Firm 1 bought new equipment that decreased its marginal cost to 15. However, firm 1 incurred a fixed cost of 30 in the process. EC335–Fall2021-2022 (Assignment 2 ) Page 3 of 4 a) What is Firm 1's new objective b) What are the reaction function of the firms? c) Are quantities strategic substitutes or complements d) Solve for the equilibrium quantities e) Solve for the equilibrium price f) what are the profits for firm and 2 g) What is Consumer surplus h) What is the total producer surplus