Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is Pepsi's best response function?
A. QP = 200PC - 67.5
B. QP = (90 + 400PC) - 500PP
C. PP = 0.315 + 0.4PC
D. PP = (0.18 + 0.8PC) - 0.002QP
C. PP = 0.315 + 0.4PC
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