In a Cournot game with homogeneous commodities, players are rms who simultaneously announce quantities they want to produce. Suppose there are two rms, 1 and 2, whose chosen quantities are q₁ and q₂ respectively. The market price is given by P = 27 4Q where Q = q₁ + q₂. The constant marginal cost of each rm is 3.

a) (12 points) What is the best response function for each rm?

b) (6 points) What is the best response quantity for each rm to produce?

c) (6 points) What is the market price?

d) (6 points) What is the prot for each rm?