Can someone please explain how to answer this using piecewise function? 2. Demand for a product is D(p) = 5-p, two firms are the potential producers of the product, for the consumerproducts from each firm are exactly the same. Assume firm 1 has a marginal cost of c₁ = 1 and firm 2 has a marginalcost of c₂ = 1.5. Assume that the lowest unit of prices is 1 cent (0.01). Both firms choose prices simultaneously.a) Write the profit of each firm as a function of prices P1, P2b) What is the optimal pricing strategy for each firm?c) What are the equilibrium prices?d) What is the consumer surplus?e) What is the producer surplus?f) True or false. Firms competing in prices for an homogeneous good make zero profits in equilibrium.

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Economics

Can someone please explain how to answer this using piecewise function?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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