Suppose that an industry comprising two firms produces a homogeneous product. Consider the following demand and individual firm’s cost function:.P=200-2(Q1+Q2)  TC1=4Q1,TC2=4Q2 Calculate each firm’s reaction function. Calculate the equilibrium price, profit-maximizing output levels, and profits for each firm. Assume that each duopolist maximizes its profit and that each firm’s output decision is invariant with respect to the output decision of its rival.

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