suppose 2 firms compete in quantities in a market in which the market demand is p = 300-q. Each firm has a constant marginal cost of $60.

1. what is the Cournot equilibrium in a one-shot game?

2. what is the monopoly output and profit?

3. suppose the 2 firms repeat the game for infinitely many times. consider the trigger strategy: the firms produce 1/2 of the monopoly output as long as no one deviates in the past. otherwise, the firm produces the Cournot output forever. what is a firm's best deviation profit?

4. is the collusion sustainable?