Question: 2. Use the same demand function as in problem 1, Q(p) = 500 - 250p. Suppose now that each firm has a constant marginal cost

2. Use the same demand function as in problem 1, Q"(p) = 500 - 250p. Suppose now that each firm has a constant marginal cost equal to 1. a. If there are 2 identical firms, what would be the profit of each under Cournot competition? b. What would be the profit of each if they collude? c. If the firms face that demand function each period, what discount factor is required to support collusion? 3. Solve question 2 again but with three firms instead of two. Is the discount factor required to support collusion higher or lower. Explain why

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