1. The market demand for a good is Q=120p in each of an infinite number of periods. There are two firms with zero average costs. The discount factor is 0.9. What is thenet benefitfrom cheating if trigger strategies assume setting P=MC forever? Answer format is one numeric value.
2. The market demand for a good is Q=120p in each of an infinite number of periods. There are two firms with zero average costs. The discount factor is 0.9. If the discount factor was 0.3 instead of 0.9, what would be thenet benefitfrom cheating if trigger strategies assume setting P=MC forever? Answer format is one numeric value