In Oligopoly market, there are two competing firms. They produce identical goods and each firm has total cost function which is expressed by:

TC(q)=30q+1.5q²

Also, market demand for this market is P=300-3Q.

(a) If each firm acts to maximize its profits, taking its rival's output as given (i.e., the firms behave as Cournot oligopolists), what will be the equilibrium quantities selected by each firm? What is total output, and what is the market price? What are the profits for each firm?

(b) It occurs to the managers of Firm A and Firm B that they could do better by colluding. If the two firms collude, what would be the profit-maximizing choice of output? The industry price? The output and the profit for each firm in this case?