QUESTION 12 Consider an industry with two identical firms (denoted rm 1 and 2) producing a homogenous good. Firms compete in quantities and have a constant marginal cost of 30. Demand in the industry is given by D(p) = 195 p/2. Let q1 and q2 denote the quantities of firm 1 and 2, respectively. Derive the best resonse functions and the Nash equilibrium in quantities. Which of the following statements are correct? [There may be more than one correct statement] C] None of the above. [3 The Nash equilibrium quantity for each firm is 30. [j The Nash equilibrium quantity for each firm is 40. C] The reaction function of firm 1 is given by q1 = 60 - (q2)l2. [j The reaction function of firm 1 is given by q1 = 45 - (q2)l2. [j The reaction function of firm 1 is given by q1 = 90 - (q2)l2. C] The Nash equilibrium quantity for each firm is 60