Information for questions 01 to I)? Consider a market with two firms {Firm 1 and Firm 2}, which produce an identical good. Both firms have the same constant marginal cost: ME = m = 40. The demand in this market is given by: Q = HID.2513 :p=44Q Let P: . G1, and TI] denote the price charged by firm 1, the quantity firm 1 produces and sells, and firm 1's profits, respectively. Analogously, let p2, g, and T52 denote the price, quantity, and profits of firm 2, When appropriate, assume the firms split total quantity and profits evenly. Question 01 Assume Firm 1 and Firm 2 compete by choosing prices simultaneously (Bertrand oligopoly with identical products). Find the price, quantity, and profit of each firm in equilibrium. Which of the following alternatives is correct? (a) p1 = p2 = $220, q1 = 92 = 22.5, and m = 12 = $4,050 (b) p1 = $160, p2 = $220, q1 = 60, q2 = 0, m = $7,200, and 12 = $0 (c) p1 = P2 = $160, q1 = 92 = 30, and m1 = 12 = $3,600 (d) p1 = p2 = $40, q1 = 92 = 45, and m1 = 12 = $0