Q1. Static Cournot (15 points) Suppose a market has two firms (Cournot duopoly) each of them with its re- spective cost function: C1(91) = 297 + 300 and C2(92) = 40q2 + 1000. Each firm sets its output simultaneously. Market demand function is given by P(Q) = 170 - 2Q where Q = q1 + 92. a) (10 points) Obtain each firm's best responses and individual level of out- put. b) (2 points) What is the market price? c) (3 points) Compute the HHI for this market