Consider a duopoly with homogeneous goods. Assume that inverse demand in that market is given by: = . Also, assume that total costs are given by 1 = 11 + 1 and 2 = 22 + 2. (a) Examine this market assuming firms are playing a quantity setting game (Hint: you may ignore the fixed costs to see the result, and then see how the fixed costs affect the location of the isoprofit curves). (i) Determine the Cournot-Nash equilibrium in this market. (6 marks) (ii) Illustrate the reaction functions for each firm. (3 marks) (iii) Illustrate the isoprofit curves for each firm. (3 marks) (b) Examine this market assuming firms are playing a quantity setting game, but that firm '1' is a Stackelberg leader. (i) Determine the Stackelberg-Nash equilibrium in the market. (5 marks) (ii) Illustrate this equilibrium. (3 marks) (c) Examine this market assuming firms are playing a price setting game. (i) Determine the Bertrand -Nash equilibrium in the market. (3 marks) (ii) Illustrate the reaction functions for each firm. (2 marks)