Consider a market where two firms, 1 and 2, compete in price with differentiated products. In this market, firms 1 and 2’s best-response functions are respectively 1(P2)=P1=(20+c1+P2)/2 and 2(P1)=P2=(20+c2+P1)/2. The firms’ constant marginal production costs are c1=c2=4. Q6) Draw each firm’s best-response function with P1 on the vertical axis and P2 on the horizontal axis. Q7) Determine the equilibrium price for firm 1.