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Assume the (inverse) market demand for a homogeneous good is given is given by P=200 Yr Where Yr is total industry output. The only two rms (rm 1 and 2) that produce this good each have a constant marginal cost of production equal to $20 and no fixed costs. a) b) C) d) What are rm 1's and rm 2's reaction mctions (each rms best response to the other rm)? Suppose the two rms choose quantities simultaneously. What are the Cournotnash equilibrium price, quantities, and prots of the two rms in this market? Suppose now, that rm 1 gets the right to choose the quantity rst. Set up rm 1's prot mction explaining in words the reasoning of the rm. Further, calculate the equilibrium quantities and prots of rm 1 and firm 2? Consider the following statement and explain whether it is true or false. Motivate your answer. \"In a similar situation, the leader in c) will always make a prot at least as large as in b).\" Assume instead that competition is in prices rather than quantities. What do we call this type of competition? Find the price, quantity and prots of both rms under this scenario