Suppose that two firms are selling a homogeneous product. The market demand is given by = 130 . Both firms have the same capacity limit: = 30. Assume that the production cost is 10 for both firms. Each firm chooses its price at the same time. A. Is 1 = 2 = 10 a Nash equilibrium? Explain. B. Is 1 = 2 = 70 a Nash equilibrium? Explain. C. Now suppose that firms have a larger capacity limit: = 42. Is 1 = 2 =46 a Nash equilibrium? Explain. D. Continue to assume = 42 . Show that 46 < 1 = 2 70 cannot be a Nash equilibrium