We should reaction functions of both firms.
"TP1 = PQ1 - C(Q1) = 400Q1 - 2Q1^2 - 2Q1\u00d7Q2 - 50Q1 = 350Q1 - 2Q1^2 - 2Q1\u00d7Q2."
"TP'(Q1) = 350 - 4Q1 - 2Q2 = 0,"
Q1 = 87.5 - 0.5Q2.
Similarly Q2 = 87.5 - 0.5Q1.
Q1 = 87.5 - 0.5×(87.5 - 0.5Q1),
0.75Q1 = 43.75,
Q1 = Q2 = 58.33.
P = 400 - 2(Q1 + Q2) = 283.33.
Profits of both firms TP1 = TP2 = 283.33×58.33 - 50×58.33 = 13,610.33.
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