1 Cournot Suppose there are two departments selling economics degrees in one market competing fol- lowing the rules of the Cournot Oligopoly Modelecon and man. econ. Suppose market demand for an economics degree is () = 32000 4p. Suppose both departments marginal cost is $6000 per degree. 1.1 What is each department's residual demand curve? 1.2 What is each department's best response functions? 1.3 What is the Nash-Cournot equilibrium in this market? 1.4 What is the price at this equilibrium? 1.5 What are profits for the two departments at this equilibrium? 1.6 Graph the marginal cost, demand, residual demand, and marginal revenue curve for the econ department. Show the equilibrium price and quantity for the econ department