The inverse market demand curve for bean sprouts is given by P(Y) = 100 -2Y, and the total cost function for any firm in the industry is given by TC(y) = 4y.

1. The marginal cost for any firm in the industry is equal to ___ The change in price for a one-unit increase in output is equal to ________.
2. If the bean-sprout industry were perfectly competitive, the industry output would be ______, and the industry price would be ______.
3. Suppose that two Cournot firms operated in the market. The reaction function for Firm I would be _____ (Reminder: Unlike the example in your textbook, the marginal cost is not zero here.) The reaction function of Firm 2 would be ____ If the firms were operating at the Cournot equilibrium point, industry output would be _____, each firm would produce ______, and the market price would be ____________
4. For the Cournot case, draw the two reaction curves and indicate the equilibrium point on the graph.
5. If the two firms decide to collude, industry output would be ____ and the market price would equal _______
6. Suppose both of the colluding firms are producing equal amounts of output. If one of the colluding firms assumes that the other firm would not react to a change in industry output, what would happen to a firm's own profits if it increased its output by one unit? _______
7. Suppose one firm acts as a Stackleberg leader and the other firm behaves as a follower. The maximization problem for the leader can be written as _____ Solving this problem results in the leader producing an output of _____ and price of _____