PS Game Theory_DunnCharles [Compatibility Mode] Q v Search in Document Home Insert Design Layout References Mailings Review View 60 Times New Ro. 10…

I need help on question 6 regarding Game theory..i have tried and cant seem to figure out what i am suposed to do

PS Game Theory_DunnCharles [Compatibility Mode]Q v Search in DocumentHomeInsertDesignLayoutReferencesMailingsReviewView60Times New Ro…10A-A AavEEEE.E4 4AaBbCcDdEeAaBbCcDdAaBbCcDd.AaBbCcDdEeAaBbCcDdEeAaBbCcPasteBU abe X2 X2 A v . ANormalHeading 1Heading 2Heading 3Heading 4TitleStyle:PaneMany industries in the United States have only a few major firms. Each of these firms often has constant marginal costs in therelevant range of production. It is possible that these large firms may collude, but collusion can be difficult to observe (U.SDepartment of Justice) and enforce (colluding firms). As an example, suppose an industry has only 2 firms: 1 and 2. Theyproduce a slightly differentiated product and use their own price as the strategic variable.Firmq1 = 64 – 4*P1 + 2*P2TC1 = 10 + 8q1Firm 2:q1 = 64 – 4*P2 + 2*P(4 pts.) Find the equations for each firm’s profits in terms of Pi and P2:e equatations for efirm’snziFind the equationuation of industry profits in terms of Pi and P2:t1 + 2=Find the equation of industry’s marginal profit (OfI/OP1 and All/OP2) in terms of Pi and P2:mm1+2mm1+2Page 3 of 7844 WordsEnglish (US)110%

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