10.A municipality is assigning permits to open the only two pizza restaurants in the city center, which is subject to strict regulations because of its historical value. The product can be considered to be homogeneous. The inverse demand curve is P = 12 - Q/6 (where P is the market price and Q the aggregate market quantity). License 1 gives the right to be the first to open the restaurant and choose the output (production capacity of the oven). License 2 allows to choose the output after having observed the output of the first restaurant. Once chosen, capacities cannot be changed due to regulatory constraints. The cost function is linear and symmetric, equal to TCi = 2qi (where i = 1, 2).

Find out the outputs set by the two firms and the corresponding market price

a.q1 = 30, q2 = 15, P = 4.5

b.q1 = 15, q2 = 30, P = 4.5

c.q1 = 20, q2 = 20, P = 5.33

d.None of the options