A homogeneous-good duopoly faces an inverse market demand function of p = 50Q.

(a) Assume that both firms face the same constant marginal cost, MC1 = MC2 = 10. Calculate the output of each firm, the market output, and the market price in a Nash-Cournot equilibrium.

(b) Explain the equilibrium outcome that would arise if the firms engaged in Bertrand (price) competition, rather than Cournot (quantity) competition.

(c) Re-solve part (a) assuming that the marginal cost of firm 2 rises to MC1 = 15.