Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or t3pe values, as you will not receive full credit for your answers. The inverse market demand curve for a duopolj; market is p = 14 - Q = 14 - (fl - q}. where Q is the market output and (fl and gr; are the outputs of Firms 1 and 2 respectively. Each rm has a constant marginal cost ofE and a xed cost of4. Consequentl}: the Nash-Coumot best-response curve for Firm 1 is girl = s - gig-'2. p = 14 - Q = 14 - E11 - to :11 = 5 - as\"? 1-1:: = 2 PC = 4 a} Calculate the prot-maxirnizmg output for Firm 1 (best response 3R1): the prot for Firm 1__ the market output and the price for q; = l}: 21 12. mm\" Use the scatterplot option in Excel to draw the best-response curve for Firm 1. b) What is the monopoly output and profit for Firm 1? (That is, how much does Firm 1 produce if Firm 2 does not produce?) If Firm 1 expects Firm 2 to produce 10 units of output, would it operate in the long run (given that it can avoid incurring its fixed costs by shutting down)? Will it operate in the short run (when its fixed cost cannot be avoided)? The monopoly output for Firm 1 is unit(s) and the monopoly profit is If Firm 2 produces 10 units of output, Firm 1 will in the short run and will in the long run