Local analysis ◆ For the firm j {(-21,91):q≥0andz≥c (q,)} ◆ Profit maximization max pg-c q ◆ First order condition p=c (,), for g>0Local analysis For the firm j Profit maximization First order condition: {( , ) : 0 and ( )} Y z q q z c q j j j j j j j = −   0 max ( ) j j j j q p q c q   − ( ), for 0 j j p c q q   =  