help Presently, APlus Transport and Big Movers are the only suppliers of services that haul heavyconstruction equipment between jobs within the Midwest. No other suppliers have the equipmentnecessary to perform the service. The market inverse demand for these hauling services is givenbelow.P= 4,030-40where P is price per trip and Q is total number of trips per year. For simplicity, also assume thatneither firm has fixed costs. From company records, you are given the following variable costfunction for each firm:TVC₁ = 300TVCB = 80QBa. Assume these two competitors operate as a two-firm Cournot duopoly. Find the reactionfunctions for each firm.b. Calculate the Cournot market equilibrium price-output solutions for each firm including theirrespective profits.c. Suppose Big Movers shuts down operations so that APlus now has a monopoly in thismarket. What is the price, quantity, and profits for APlus after this change?d. Summarize the results of your findings over the two possible outcomes. In your summaryinclude price, quantity and industry profits. Comment on your results.

Cournot equilibrium is a concept in economics that describes a situation in which two or more firms…

Presently, APlus Transport and Big Movers are the only suppliers of services that haul heavy construction equipment between jobs within the Midwest. No other suppliers have the equipment necessary to perform the service. The market inverse demand for these hauling services is given below. P= 4,030-40 where P is price per trip and Q is total number of trips per year. For simplicity, also assume that neither firm has fixed costs. From company records, you are given the following variable cost function for each firm: TVC₁ = 30QA TVCB = 80QB a. Assume these two competitors operate as a two-firm Cournot duopoly. Find the reaction functions for each firm. b. Calculate the Cournot market equilibrium price-output solutions for each firm including their respective profits. c. Suppose Big Movers shuts down operations so that APlus now has a monopoly in this market. What is the price, quantity, and profits for APlus after this change? d. Summarize the results of your findings over the two possible outcomes. In your summary include price, quantity and industry profits. Comment on your results.