Problem 3. Suppose there are two emergency hospitals in Townville, State ER and University ER. Overall demand (patients) for ER visits in Townville is P = 120 262 per day, Where Q = qs + q\". Marginal cost at the State ER is cs 2 84 per patient. University has access to better equipment so their marginal cost is cu = 60. The two hospitals compete under Cournot competition. 1. Write down each rm's prot function: 7rs(qs, (1..) and Tru(qm qs). 2. Find the best response function for each rm: q(qu) and gags). 3. Solve for the equilibrium quantities, price and prot for each rm. 4. Briey explain the intuition for why one rm may be making more prot than another