2.

Consider a market with two firms with an identical product. The market demand Q is given by P=1504Q Each firm has constant marginal cost equal to 30. The two firms set quantities for production simultaneously as in a Cournot model.

a) Calculate the reaction function for each firm,the equilibrium quantities, market price,and profit for each firm.

b)Suppose now that the two firms collude to behave like a monopolist, calculate the equilibrium market price, the total industry quantity and profit.Compare this with (a)and comment on whether collusion is stable or not.

I'd appreciate it if you could write down the solving process in detail because I'm going to study alone for the test.