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need a help on this practice question. Thank you COURNOT DUOPOLY (30 points) Consider two identical firms (no. 1 and no. 2) that face a

need a help on this practice question. Thank you

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COURNOT DUOPOLY (30 points) Consider two identical firms (no. 1 and no. 2) that face a linear market demand curve. Each firm face a marginal cost of zero and the two firms together face demand: P = 24 - Q, where Q = Q1 + Q2. (a) Find the Cournot equilibrium price as well as the quantities for each firm. (Hint: MR, = 24 - 201 - Q2 and MR2 = 24 -202 - Q1 .) (10 points) b) If each firm must incur a fixed cost of $32, what is the profit of each firm? (5 points) (c) Find the equilibrium P as well as respective Qs for each firm assuming that the firms collude and share the profit equally. Each must incur a fixed cost of $32 and marginal cost of zero. What is the profit of each colluding firm? (Hint: MR = 24 -2Q.) (10 points) d) Which scenario is better from the perspective of consumers? Why? (5 points)

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