Quasar Corporation is set to release its latest video game system which utilizes the newest game technology. In fact, the release date is sooner than that of its only rival Orion. This gives Quasar Corporation "first-move" ability. The demand for video game systems is: 
Orion's marginal revenue curve is: 
The marginal cost functions are: 
Determine Orion's reaction function. Given that Quasar Corporation has this information and moves first, Quasar's marginal revenue function is: 
Calculate Quasar Corporation's optimal output level. Does the "first-move" ability of Quasar Corporation allow it to capture a larger market share?
Definitions:
Standard Deviations
A measure of the dispersion or variability within a set of numerical data, indicating how much variation there is from the average (mean).
Sample Averages
The mean value calculated from a sample set of data, representing the central tendency or typical value of that sample.
Mode
Mode refers to the most frequently occurring value in a set of data.
Regression Toward the Mean
A statistical phenomenon wherein extreme scores on one occasion tend to be closer to the average on subsequent testing.
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