Consider an industry with two identical firms (denoted firm 1 and 2) producing a homogenous good. Firms compete in quantities and have a constant marginal cost of 30. Demand in the industry is given by D(p) = 195 - p/2. Let g1 and q2 denote the quantities of firm 1 and 2, respectively. Derive the best resonse functions and the Nash equilibrium in quantities. Which of the following statements are correct? [There may be more than one correct statement.] The reaction function of firm 1 is given by q1 = 60 - (q2)/2. The Nash equilibrium quantity for each firm is 30. None of the above. The Nash equilibrium quantity for each firm is 40. The reaction function of firm 1 is given by q1 = 45 - (g2)/2. The Nash equilibrium quantity for each firm is 60. The reaction function of firm 1 is given by q1 = 90 - (q2)/2