(20 points) In a market with annual demand Q = 100p there are two rms, A and B that make identical products. If one charges a lower price than the other, all consumers will want to buy from it. If they charge the same price, consumers are indifferent and end up splitting their purchases evenly between the two rms. Marginal costs is constant and equal to 10 for both rms. 1.1. What are the single period Nash equilibrium prices pA and p13? 1.2. What prices would maximize the two rms' joint prots? 1.3. If the interest rate is 10%, is one repeated game Nash equilibrium for both firms to charge the price you found in part b? What if the interest rate is 110%? What is the highest interest rate at which the joint protmaximizing price is sustainable