Suppose the market demand for a good is given by P = 90 - 3Q. Also, there is an incumbent firm already in the market, and a potential entrant. Let's call the incumbent firm Firm 1, and the potential entrant Firm 2. Each firm has an identical Total Cost of production given by TC = 147 +6q, where q is the quantity of output produced by that firm. MC for each firm = 6. a) (6 points) What is Firm 2's Best Response function? (Write the equation.) BR2 is ____________________________________

b) (8 points) Suppose Firm 1 wishes to produce a quantity of output so that the maximum profit the entrant could make is $0. How much output should Firm 1 produce?