Two dairy farmers produce milk for a local town with local milk demand given by Q=100-1/3P(P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC=150+2q(wheredenotes output).(a) Determine the reaction function of each farmer.(b) Find the Cournot-Nash equilibrium.(c) Calculate profits for each farmer(d) Suppose that both farmers decide to form a cartel, determine profitsfor each farmer under the cartel(e) What output should farmer 1 produce if he/she expects their rival to produce 20 units?(f) Calculate the profits if farmer 2 decides to break the cartel agreement(g) Does joining a cartel offer any benefits to both farmers? Justify your answer(h) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers.
Please answer g and h
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