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Duopoly with product differentiation in which the demand and cost functions are q1=88-4p1+2p2 c1=10q1, q2=56+2p1-4p2 c2=8q2...

Duopoly with product differentiation in which the demand and cost functions are q1=88-4p1+2p2

c1=10q1,

q2=56+2p1-4p2

c2=8q2

for the firm I and II respectively

Derive the price reaction functions for each firm on the assumption that each maximises its profits with respect to its own price. Determine the equilibrium price, quantity and profit for each firm.

Kindly elaborate the steps along with the books referred. Thanks

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