There are two schools which offer MA degrees in economics and education: MIT and Stanford. The market-level demand curve for MA degrees is Q = 1,500-3P. The marginal cost each school faces is 10qf, where qf is the firm's own q (e.g. q1 or q2).

a) Using the Bertrand Competition, calculate the equilibrium price and quantity each firm produces.

b) Using Cournot Competition, calculate the equilibrium price and quantity each firm produces.

c) Using Stackleberg Competition, and assuming MIT is the first mover, calculate the equilibrium price and quantity each firm produces.

Now imagine California passes a new rent ordinance making Stanford pay extra for international students. Its marginal cost is now 15Q. MITs marginal cost remains as it was earlier.

d) Under these new marginal cost curves, use Cournot Competition to calculate the equilibrium price and quantity each firm produces.

e) Now imagine Stanford attempts to differentiate its goods. The new demand functions for the two schools are Q_s=30-2P_s+P_c and Q_m=32-2P_c+P_s. Each firm faces a constant marginal cost of 1. Use Bertrand Competition with Differentiated Goods to determine the equilibrium price and quantity each firm produces.