A local government plans to auction off a franchise to supply service to the town. The (inverse) demand curve for the service is P(Q) = 100 - Q, where P denotes price and Q denotes quantity. Only two firms, firm 1 and firm 2, are qualified to compete for the franchise. Firm 1's cost function: C(Q) = 10Q; Firm 2's Cost function: C(Q) = 20Q. The auction rules are as follows: The firm that promises to supply the service at the lowest price wins the franchise.

Part A: Which firm will win the franchise?

Part B: What is the winning bid?