Two firms are located adjacent to one another and each imposes an ex- ternal cost on the other: the detergent that firm 1 uses in it’s laundry business makes the fish that firm 2 catches in the lake taste funny, and the smoke that firm 2 uses to smoke its caught fish makes the clothes that firm 1 hands out to dry smell funny. as a consequence, each firms profits are increasing it its own production and decreasing in the production of its neighboring firm. in particular, if q1 and q2 are the firms’ production levels then their per-period (stage game) profits are given by
vi(qi, qj)=(30−qj)qi −qi2
(a) draw the firms’ best response functions and find the nash equilibrium of the stage
for i ∈ {1, 2}.
game. how does this compare to the pareto optimal stage-game profit levels?
(b) for which levels of discount factors can the firms support the pareto optimal level of quantities in an infinitely repeated game?

With q7 assume the sweet company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. and for q 10,11,13,and 14,assume that the company use department predetermined overhead rates with machine-hours as the allocation bade in both departements.7. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answers to nearest whole dollar.)total price for the job for job p -job q selling price per unit for job p q . how much manufacturing overhead was applied from the molding department to job p and how much was applied to job q? (do not round intermediate calculations.) job p job q manufacturing overhead applied for job p for job q . how much manufacturing overhead was applied from the fabrication department to job p and how much was applied to job q? (do not round intermediate calculations.)job p job q manufacturing overhead applied for job p for job q . if job q included 30 units, what was its unit product cost? (do not round intermediate calculations. round your final answer to nearest whole dollar.)14. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answer to nearest whole dollar.)total price for the job p for job q selling price per unit for job p for job q