1. Two firms in a Cournot oligpoly each have the best response function, such that the optimal quantity for each individual firm to produce must satisfy the equation:

Q* = 27 - Q*/2

What quantity Q* will each firm produce in the market?

2, Suppose that firms, A and B, are the only two firms in a market. They will each choose, without knowing the other firms' choice, a quantity of output to bring to the market. Firm A's best response function is Q_A = 12 Q_B/2 Firm B's best response function is Q_B = 9 Q_A/2

In the Nash Equilibrium, what quantity will firm A supply to the market?