3. (3 points) Consider 2 Bertrand Oligopolists. They have symmetric cost functions: C = 2000+ (Q1) C = 2000 + (Q2) And demand for the good is P1200 3(Q1 + Q) A. Suppose they start with a common price of 450 (P = P = P2 = 450), and they split the resulting quantity evenly. What quantities will each firm sell? What profit will each of them earn? B. Suppose firm 2 cuts their price to 420. Find the quantities and profits for each firm. Was cutting the price a good idea for firm 2? C. How do you think firm 1 would react? Intuitively, how would this market resolve itself? D. (Extra Credit) Find the quantities and profits for the Bertrand Equilibrium.