題組內容

2. Consider a duopoly where the demand and cost functions are : \( p = 100 - 2(q_1 + q_2) \), \( c_1 = 2q_1 \) and \( c_2 = 2q_2^2 \) Assume that each firm maximizes his profit on the assumption that the quantity produced by his rival is invariant with respect to his own quantity decision.


(1) derive each firm's quantity reaction function. \( (10\%) \)