[30 points] Suppose that demand is g : IO p. Firms 1 and 2 compete in this market. Consider the following game. In the rst period, both rms simultai'ieously choose capacities In and k2. Capacity cost per unit is constant and equal to I. In the second period: rms compete by simultaneously choosing p1 and p2 with the restriction that the quantities sold cannot exceed the installed capacities, q] <_: and q2 a32. there are no additional production costs in the second period. price competition stage given rst period capacity choices : pa l kg="6" determine two rms1 rots. oints p part that rm is playing equilibrium strategy would play pure with positive probability explain. points i rms prots. suppose limited to those within capacity-constrained case s r1 r2 solve for subgame perfect equi- librium interpret your results.>