1 . Suppose the demand for burrito in a small isolated town is p = 8 - 2Q. There are only two firms, A and B, and each has a marginal cost of 2. Determine the Cournot equilibrium. (hint: using the rule that Marginal Revenue's slope is always twice as much as the slope of the residual demand curve as long as the residual demand is linear in output)

2.Each consumer has an identical demand curve for golf, q = 200 - 2p, where q is the number of times of golf played per year and p is the price per round. The only golf course in an isolated town incurs a marginal cost of $5 per round of golf. It wishes to charge a membership fee and a fee per round of golf. What price will it set for each fee? (10pts)

3.. Suppose that market demand can be represented as p = 100 - 3Q. There are 10 identical firms producing an undifferentiated product, each with the marginal cost function MC = 3q. If the firms form a cartel, the marginal revenue for the cartel is MR = 100 - 6Q. Compare the competitive outcome with the cartel outcome. What is the individual firm's incentive to cheat on the cartel? (show the procedure you reach your conclusion)