Gillette (firm 1) and Schick (firm 2) are the only two firms in the market for disposable razors

Gillette (firm 1) and Schick (firm 2) are the only two firms in the market for disposable razors. The market inverse demand function for razors is P = 95 − q₁ − q₂. Each firm has constant marginal costs given by MC = 5, and zero fixed costs.Consider the case that Gillette (firm 1) operates as a (single-price) monopolist in the market. At its profit maximum the market-clearing price will be , and its profit will be Now suppose that Schick (firm 2) enters the market and chooses q2 to maximise its profit treating the output of firm 1 as given. Consider its best-response function. At q1 = 0 firm 2 will supply and for each one-unit increase in q? it will decrease its output by units.