Consider an industry that produces a homogeneous good. Any firm can produce as much as it wants at a constant marginal cost of c per unit. Assume that all firms have price as the strategic variable. (i) If the firms choose prices simultaneously and noncooperatively and the market lasts for only one period, what price will prevail? Why? (ii) Suppose that the firms meet repeatedly. Can the firms "tacitly collude"? (Describe various theories of repeated interaction and the stylized facts they are meant to explain.)