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Please help with the whole question 2 (part a - part d) with detailed step-by-step procedures and explanations (provide drawings if needed). Thank you! Will

Please help with the whole question 2 (part a - part d) with detailed step-by-step procedures and explanations (provide drawings if needed). Thank you! Will rate helpful.

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Question 2 (Oligopoly/Pricing Strategies) Firm 1 and Firm 2 sell homogenous (i.e., identical) products. The market demand for their products is given by P = 2,200 - 10Q, where P is the price per unit and Q = q1 + 92 is the total quantity, with q, as Firm l's output and q2 as Firm 2's output. Each firm has marginal cost of production equal to $100, and fixed costs equal to $25,000. Note: Round your final numbers to 1 decimal place. a) Suppose that both firms simultaneously choose their quantities in a non-cooperative game. Identify (i) the equilibrium quantities, (ii) the equilibrium price, and (iii) the profits. (6 points) b) Now suppose that Firm 1 chooses its quantity before Firm 2. Identify (i) the equilibrium quantities, (ii) the equilibrium price, and (iii) the profits. (6 points) c) Now suppose that Firm 1 and Firm 2 form a cartel, i.e., they collude to restrict output. Identify (i) the quantity that each firm in the cartel will then produce, (ii) the cartel price, (iii) the profit of each firm in the cartel. (5 points) d) Without doing any math, how would you expect consumer surplus (CS) for parts (a), (b), and (c), to rank? Briefly explain. (3 points)

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