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Suppose that there are two firms producing an identical product. Market demand is Q = 1,200 - P. (PE12.11) The marginal cost of product

Suppose that there are two firms producing an identical product. Market demand is Q = 1,200 - P. (PE12.11) The marginal cost of product by both firms is MC = 0. a. Firms 1 and 2 have 200 units and 300 units of capacity, respectively. What is the Bertrand-Nash equilibrium? b. Given your answer to part a, calculate each firm's total profit.

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