Consider an industry with two firms (duopoly) the produce a homogenous product (same product). The two firms strategically choose their price (price is the choice variable, not quantity). Note, this is a Bertrand duopoly setting. Firm 1 has a cost function c1(q1)=25q1. i.e. MC=25. and firm 2 has a cost function of C2(q2)=80+15q2 i.e. MC=15.The market demand is Q=100-p.
a. Use your knowledge of game theory to solve for the price charged in the market, the quantity produced by each firm, and the profit for each firm