If market inverse demand is p1q1 a1 - b1q1 in market 1 and


If market inverse demand is p1(Q1) = a1 - b1Q1 in market 1 and p2(Q2) = a2 - b2Q2 in market 2, and the ?rm produces according to C(Q1, Q2) = cQ1 +dQ1^2 +eQ2, determine the ?rm's optimal quantity, price in each market, and pro?t level. (Assume that a1, a2, b1, b2, c, d, e> 0.)What conditions on b and d must hold in equilibrium?

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