Two firms produce vertically differentiated goods. The demand that firm 1 faces is given by: q1 = 1 + 2 P1 and the demand that firm 2 faces is given by: 92 = , where p; is the price good i $1- 52 $1 - $2 i = 1,2 and $1 > $2 > 0. The constant marginal cost of firm i is s;. The firms choose prices simultaneously. a. Which of the two firms has the higher quality? b. Calculate the Nash equilibrium prices, quantities and profits in equilibrium. c. How do the results you obtained in part a above compare with those we discussed in class for the case in which the firms' marginal costs are zero