Question 1 (1 point) What term describes the differentiation of a product when only some consumers prefer it to competing products (holding price equal)? Vertical differentiation OO Spatial differentiation O Idiosyncratic differentiation O Non-price differentiation Horizontal differentiation Question 2 (1 point) Two firms compete in a Cournot duopoly market, where industry demand is given by: P = 100 - Q1 - Q2 where P = industry price and Qi = the output of firm i, for i=1,2 Each firm has a constant marginal cost of $25 per unit. In the Cournot (Nash) equilibrium, each firm will produce units of output O A) 30 ( B) 25 O C) 20 O D) 35 O E) 60