2. (35 points) Two rms play the following game. Firm 1 chooses a quantity qt. and this is observed by Firm 2, who in turn chooses his quantity ({3. The inverse demand function is P(q1 + ({3} = 8 (q. + (12). Firm ['5 marginal cost is 3. and Firm 2's marginal cost is 2. Firms' prot at the end of the game is their revenue minus their cost. (a) (20 points) Find the quantities produced in Subgame Perfect Nash Equilibrium. (b) (5 points) What is each rm's strategy in the SPNE? (c) (It) points) Firm 1's cost is higher that Firm 2's. Does it produce less in equilibrium? Interpret