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Suppose firm A and B operate under conditions of constant marginal and average cost but that MCA = 10 and MCB = 8. The demand

Suppose firm A and B operate under conditions of constant marginal and average cost but that MCA = 10 and MCB = 8. The demand for the firm's output is given by Q = 500 - 20P

a) If the firms practice Bertrand competition, what will the Nash Equilibrium market price be? What will be the profits for each firm?

b) If the firms practice Cournot competition, what will be the Nash equilibirum market price? What will be the profits for each firm?

c) If the firm A is the leader and firm B is the follower in this market, what will be the equilibrium price? What will be the profits for each firm?

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