1: Two firms control the market for efoil surf boards. The market price is determined by the total quantity of gear supplied to the market by Firm One and Firm Two and is given by: P = 24000 - 5 (Q1 Q2) where P is in dollars and Q is in "efoil boards." The two firms each have a constant marginal cost of 6000 and no fixed costs. (a) Determine the equilibrium of the Cournot game played by these two firms. Also, calculate each firm's profits. (b) Assume that Firm One has patented a technique that could lower its marginal costs to 3000 (the other firm could not use this new technology and so MC2 = 6000.) It will cost Firm One $4 million to switch over to the new process. Should Firm One switch over to the new technology? Show the calculations you used to answer the