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So the payoff for Firm 1,
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as it depends on the quantity that she produces and
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the quantity that the other firm produces,
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is going to be prices times the quantity
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that Firm 1 produces minus costs times the quantity that she produces.
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So this term here is revenues and this term here is total costs.
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Revenues minus costs makes profits, and again,
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for those of you who are less familiar with economics,
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I'm hoping this is not really too hard but you can read up on it.
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What I'm going to do here is I'm going to substitute in for prices.
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So I've got this expression for prices here, here it is,
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and I want to plug it into that P there.