Market demand is P = 10 - (2/3Q). There are 2 firms, D and E. Both have cost functions TCi(qi) = 3+2*qi. Output choice is restricted - Firm D may choose either q*D = 4 or q = 6. Firm E may choose either Q*E = 4 or q = 3.
a) Find the market price for each of the 4 possible output combinations.
b) Find the profits received by each firm in each of the four possible output combinations.