In the initial cournot duopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. show what happens to thebest-response function of firms if both firms now face a fixed cost of f. let market demand bep=a-−bq, where a and b are positive parameters with 2 firms.  let q1 and q2 be the amount produced by firm 1 and firm 2, respectively. assuming it is optimal for the firm one to produce, its best-response function isq1=? ?

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)