Suppose instead that there are two firms (firm 1 and firm 2) in the market facing the demand and cost conditions just described for their identical products. Firms choose quantities simultaneously as in the Cournot model. Under this scenario, each firm produces an output level of of = which will be sold at a price of Pc = $ . Each individual firm will earn a profit of m; = Suppose the two firms choose prices simultaneously as in the Bertrand model. In this case, total industry output will be Q = , sold at a price of Pb = . Each firm will earn a profit of my = 12 = On the following graph, us the blue line (circle symbols) to plot the market demand curve. Use the black point (plus symbol) to plot the industry output and price combination under a monopoly market structure. Use the grey point (star symbol) to plot the industry output and price combination under a Cournot market structure. Use the tan point (rectangle symbol) to plot the industry output and price combination under a Bertrand market structure. ? 175 O 150 Market Demand 125 100 Monopoly PRICE 75 Cournot 50 Bertrand 25 25 50 75 100 125 150 175 QUANTITY