The inverse market demand in some industry is p = 38 - 2q. Firms in the industry use a technology with a fixed marginal cost. A firm producing y units incurs a total cost of c(y) = 2y.

Part A: Suppose now that the conditions change, such that Firm 2 has to choose its quantity with no knowledge of Firm 1's choice of quantity. Moreover, this change in condition is common knowledge between the two firms. Under these conditions what would be (1) The market price? (2) The total quantity supplied by the two firms together ?(3) the total profit made by the two firms together?

Part B: Now suppose that the conditions change again, such that the two firms choose price rather than quantity. As with the previous change in conditions is common knowledge between the two firms. Under these conditions what would be (1) The market price (2) The total quantity supplied by the two firms? (3) The total profit made by the two firms together?

Part C Finally, suppose that the two firms merge so that the industry is supplied only by the combined firm acting as a monopoly supplier. Under these conditions, what would be (1) The market price (2) the total quantity supplied? (3) The total profit?