The price in a market is dominated by two firms is affected by the quantities supplied by both firms,Q₁and Q₂: P = 200 - (Q₁+ Q₂). The marginal cost for the two firms is identical and constant and equal to 40.

a.Derive the equations for total revenue for the two firms.

b.Compute the profit-maximizing levels of output and prices for the firms.

c.Compute the profit-maximizing level of output and price for the industry if the duopolists merged and formed a monopoly.

d.Compare and contrast the results from c. and d.