Answer:
Hi dear, the question you posted is not complete, but,not to worry I will be posting some important things for you to be able to solve this kind of question.
Step-by-step explanation:
From the question, we are given that; inverse market demand curve is P (Q) = 40−2Q and the two (Both) firms have cost functions C (Q) = 2Q2. Also, marginal cost function of MC (Q) = 4Q.
The kind of questions that one can expect to be asked are;
(1). The maximization problem for both firms and determine the optimal price and quantity products produced.
The solution is;
P(q) q − C (q) = (40 − 2q) q − 2q2.
Therefore, we have;
40 − 2q∗ − 4 =0
or
q∗ = 36/4.
Given q∗ = 7/4, the two firms charge price will be;
p∗ = 40 − q∗ = 44/4 = 11.
(2). How much profit does the two firms make?
=> 11 × 7/4= 77/4.