Consider the Cournot duopoly with the inverse market demand P(Q) = 100 Q. Each firm i=1,2 has the total cost function Ci(qi) = 10qi. Also, firm 2 has the capacity constant at 20 units, that is, q1 20.

(a) Find the best response function of each firm qi = BRi(qj), i = 1,2, ji. (Note: depending on qj, the formula for the best response function can be different).

(b) Find the equilibrium quantities qi C of both firms and the market price p C .