The (inverse) market demand function in a homogeneous product Cournot duopoly is as follows: P = 200- 10(Q1+Q2). The total cost functions are TC- 100 + 40Q1 for firm one and TC = 80 + 60Q2 for firm...

Extracted text: The (inverse) market demand function in a homogeneous product Cournot duopoly is as follows: P = 200- 10(Q1+Q2). The total cost functions are TC- 100 + 40Q1 for firm one and TC = 80 + 60Q2 for firm two. 1. Determine the reaction function for each firm. 2. Calculate each firm's equilibrium level of output. 3. Calculate the market equilibrium price. 4. Calculate the profit each firm earns in equilibrium.