Two rms, Firm 1 and Firm 2, compete by simultaneously choosing prices. Both rms sell an identical product for which each of 100 consumers has a maximum willingness to pay of 340. Each consumer will buy at most 1 unit, and will buy it from whichever rm charges the lowest price. If both rms set the same price, they share the market equally. Costs are given by 65((11') = l6qi. Because of government regulation, rms can only choose prices which are integer numbers, and they cannot price above $40. Answer the following: a) (0.25 point) If Firm 1 chooses p1 = 35, Firm 2's best response is to set what price? b) (0.25 point) If Firm 2 chooses the price determined in the previous question, Firm 1's best response is to choose what price? D c) (1 point) If Firm 1 chooses p1 = 10, Firm 2's best response is a range of prices. What is the lowest price in this range? D