Quantity Competition; An Example Then, for given y2, firm 1's profit function is I(y1;y2)=(60-y1-y2y1-y1 So, given y2, firm 1s profit-maximizing output level solves =60-2y1-y2-2y1=0. dy1 I. e firm 1's best response to y2 Is y1=k1(y2)=15、1 y2Quantity Competition; An Example (y ;y ) ( y y )y y . 1 2 1 2 1 1 2 = 60 − − − Then, for given y2 , firm 1’s profit function is So, given y2 , firm 1’s profit-maximizing output level solves    y y y y 1 = 60 − 2 1 − 2 − 2 1 = 0. I.e. firm 1’s best response to y2 is y1 R1 y2 15 y2 1 4 = ( ) = −