*3.4 Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q1 = 100 - 2p1 + p2, where q1 is Firm 1’s output, p1 is Firm 1’s price, and p2 is Firm 2’s price. Similarly, the demand function Firm 2 faces is q2 = 100 - 2p2 + p1. Solve for the Nash-

Bertrand equilibrium. (Hint: See Appendix 11B.) C