Suppose there are N rms in a homogeneous good market, which set their quantities sequentially (rm i in period 95). Suppose that rms have zero marginal cost of production. The industry faces an inverse demand P(q) : a q where q = 2:21 qt- is the aggregate quantity and a > U. (1) Compute the subgame perfect equilibrium and the output level of rm 9}. How does rm is quantity relate to rm 3' + 1's quantity? (2) What is the aggregate output for N rms? (3) Describe the equilibrium outcome when the number of rms increases without bounds (N > 00)