2. (20) Suppose that two firms are selling a homogeneous product. The market demand is given by P = 130 - Q. Both firms have the same capacity limit: k = 30. Assume that the production cost is 10 for both firms. Each firm chooses its price at the same time. A. (5) Is P1 = P2 = 10 a Nash equilibrium? Explain. B. (5) Is P1 = P2 = 70 a Nash equilibrium? Explain. C. (5) Now suppose that firms have a larger capacity limit: k = 42. Is P, = P2 = 46 a Nash equilibrium? Explain. D. (5) Continue to assume k = 42. Show that 46