2. In the town of Fargo there are two bakers, Alma and Blanca. Alma's bread tastes just likeBlanca's - nobody can tell the difference. Alma has constant marginal costs of $1 per loafof bread. Blanca has constant marginal costs of $2 per loaf. Fixed costs are zero for both ofthem. The inverse demand function for bread in Fargo is p = 55 - 0.58q, where q is the totalnumber of loaves sold per day.

Suppose that Blanca always gets up an hour earlier than Alma and has herbread in the oven before Alma gets started.Alma therefore makes her decision on how much bread to bake after observing Blanca'sdecision.

A) How many loaves of bread will Blanca bake?

B)How many loaves of bread will Alma bake?

C)What is the price of bread in Fargo?