If Everglow sets its quantity first,knowing Dimlit's reaction function we may determine Everglows reaction function by substituting for in its profit function.We find 702 元E=60QE- To determine the profit-maximizing derivative toero 0=60-79E=0,orQe=257. aQ 3 Substituting this into Dimlit's reaction function,we find 1.Total industry output is 47.andP. Profit for Everglow is $772.29 million.Profit for Dimlit is$689.08 million. d.If the managers of the two companies collude,what are the equilibrium values ofQe,Qp,and P?What are each firm's profits? If the firms split the market equally.total cost in the industry is 10g竖：therebse.=0+9,.Total ene10g,-G: therefore.MR=100-20.To determine the profit-maximizing quantity. set MR=MC and solve for r 100-2,=10+,or=30, This means Qg=Qp=15. Substituting into the demand equation to determine price P=100.30=$70 The profit for each firm is equal to total revenue minus total cost g=0o05)-(（ao0)-19）-s78750mm 10.Two firms produce luxury sheepskin auto seat covers,Western Where (WW) and B.B.B.Sheep(BBBS).Each firm has a cost function given by: C(q)=30g+1.5g The market demand for these seat covers is represented by the inverse demand equation: P=300-3Q, whereQ=g+,total output.If Everglow sets its quantity first, knowing Dimlit’s reaction function , we may determine Everglow’s reaction function by substituting for QD in its profit function. We find  E E E Q Q = 60 − 7 6 2 . To determine the profit-maximizing quantity, differentiate profit with respect to QE, set the derivative to zero and solve for QE:   = − = =  E E E E Q Q 60 , Q . . 7 3 0 or 257 Substituting this into Dimlit’s reaction function, we find QD =30 − = 25 7 3 214 . . . Total industry output is 47.1 and P = $52.90. Profit for Everglow is $772.29 million. Profit for Dimlit is $689.08 million. d. If the managers of the two companies collude, what are the equilibrium values of QE, QD, and P? What are each firm’s profits? If the firms split the market equally, total cost in the industry is 10 2 2 Q Q T T + ; therefore, MC QT =10 + . Total revenue is 100QT − QT 2 ; therefore, MR = 100− 2QT . To determine the profit-maximizing quantity, set MR = MC and solve for QT: 100 − 2QT = 10 +QT , or QT = 30. This means QE = QD = 15. Substituting QT into the demand equation to determine price: P = 100 - 30 = $70. The profit for each firm is equal to total revenue minus total cost: i = (70)(15)− (10)(15)+ 152 2       = $787.50 million. 10. Two firms produce luxury sheepskin auto seat covers, Western Where (WW) and B.B.B. Sheep (BBBS). Each firm has a cost function given by: C (q) = 30q + 1.5q 2 The market demand for these seat covers is represented by the inverse demand equation: P = 300 - 3Q, where Q = q1 + q2 , total output