3. Two firms are competing with each other by setting prices for their product (they produce identical homogeneous product). Firm i can produce the good at marginal cost G, i = 1, 2 (these costs are commonly known). There are two periods. Firm 1 sets its price in period 1 and once the price is announced it cannot be changed until the end of time. Firm 2 does not participate in the market in period 1; it enters the market at period 2 by setting its own price. Consumers always choose to buy from the firm whose price is the lowest. I the prices offered by two firms are equal, all the consumers buy from firm 2. The demand for a product in each period is Q = A -P. Both firms maximize the sum of their own profits across periods. (a) Assume that 0