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A homogenous-good duopoly faces an inverse market demand function of p = 150-Q.
(a) Assume that both firms face the same constant marginal cost, MC^1 = MC^2 = 30. Calculate the output of each firm, the market output, and the market price in a Nash-Cournot equilibrium
(b) Re-solve part (a) assuming that the marginal cost of firm 1 falls to MC^1 = 20.
(c) Explain what will happen to each firm's output, the market output, and the market price if the two firms can collude (e.g., form a cartel)
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