Problem
The reaction functions for two firms A and B in a duopoly are given by: QA = 104 - 2QB and QB = 80-4QA.
(a) Plot the reaction functions to scale on a graph.
(b) Solve the two reaction functions for the equilibrium output produced by each.
(c) Do you think that these firms have the same cost structure? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.