There are two firms in a market where industry demand is: P = 36 – 3(Q1 + Q2) Both firms have a marginal cost of 6. a. S

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There are two firms in a market where industry demand is: P = 36 – 3(Q1 + Q2) Both firms have a marginal cost of 6. a. S

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There are two firms in a market where industry demand is: P = 36– 3(Q1 + Q2)Both firms have a marginal cost of 6.
a. Suppose each firm maximizes its own profit, treating the other’squantity as constant. What isthe equilibrium output of each firm, and what will the market pricebe?
b. If the firms instead compete on price, where all output ispurchased from the firm with thelower price, what will the equilibrium quantity and price of eachfirm be?
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