Cournot duopolists Firm 1 and Firm 2 face inverse demand P= 24 - Q and each has a marginal cost of 6. Firm 2 revamps its production process, allowing it to produce at marginal cost of 3 (while Firm 1 still has per unit cost of 6). How does this affect Firm 1?

a)

Its output increases by 1 and its profits fall by

b)

Its output drops by 2 and its profit falls by 9.

c)

Its output is unchanged, but its profit falls by 6.

d)

Its output drops by 1 and its profit falls by 11.

e)

Its output and profits are unchanged.