Question 3: Two rms compete in quantities. Firm 1's marginal cost of production is 10 dollars per unit and Firm 2's marginal cost of production is 40 dollars per unit. The market demand curve is (2(1)) : 100 p. Each rm maximizes its expected prot. 1. Suppose the two rms simultaneously choose their quantities. Solve for the equilibrium quantity produced by each rm, the equilibrium market price, and each rms equilibrium prot. 2. Suppose rm 1 chooses quantity rst. Firm 2 chooses quantity after observing rm 1's quantity choice. Solve for the equilibrium quantity produced by each rm, the equilibrium market price, and each rm's equilibrium prot