Two firms sells an identical product. The demand function for each firm is given:Q = 20 - P, whereQ=q1+q2is the market demand andPis the price. The cost function for reach firm is given:

TCi= 10+2qifori= 1, 2.

1. If these two firms collude and they want to maximize their combined profit, how much are the market equilibrium quantity and price?
2. If these two firms decide their production simultaneously, how much does each firm produce? What is the market equilibrium price?
3. If Firm 1 is a leader who decides the production level first and Firm 2 is a follower, how much does each firm produce? What is the market equilibrium price?