Local analysis ◆ For the firm j y=(-=1,9):9,≥0and=1≥c(q) ◆ Profit maximization max pq-c, q) First order condition p=c g ), 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   =  