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2. Suppose two identical firms with MC = 3 face the market demand curve P = 45 - 2Q. a. (2 pts) Find the

2. Suppose two identical firms with MC = 3 face the market demand curve P = 45 - 2Q. a. (2 pts) Find the cournot equilibrium price and quantities. b. (2 pts) Find the optimal output and price that results from cooperation between the two firms, i.e. joint maximization. c. (2 pts) If both firms split production when cooperating, would firm 1 necessarily have an incentive to "cheat" the agreement? Justify your answer analytically.

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