You run a firm called Hammocks ‘R Us (R Us) and are in a duopoly
with Hammocks, Hammocks, Hammocks (HHH). You both sell hammocks,
but your products are differentiated. You and your competitor
compete on price with each firm facing a demand curve: Qrus = 24 −
2Prus + 2Phhh and Qhhh= 24 − 2Phhh + 2Prus You each face a fixed
cost of $5 and no variable costs.
A) Explain why own price has a negative sign in the...