Consider a market where there are only two firms selling differentiated products. Assume that Firm 1's inyerse demand curve is p1 = 1d Eh [15:32 and rm 2's inyerse demand more is p: = 14- qz .5q1. Suppose rm 1's total cost is [:1 = 10 + qland firm 2's total cost function is {2'2 = 12 + 1.1q2. Show the basis and briefly explain what is going on as you answer each of the following questions. Your marl: will depend upon the correctness of your basis and explanation. 1. Suppose that the two rms compete by setting their quantities simultaneouslyr as in the Coumot mode]. a. Find the output reaction function of each rm. h. Find the Nash-Cournot equilibrium outputs of the two rms. c. Find the Nash-Coumot equilibrium prices of the Mo rms