Consider a variant version of the Bertrand model we learned in class. Two firms

compete through price and the demand function is D(p) = 100 p when p < 100

and 0 when p 100. Each firm has the same constant marginal cost and 0 fixed

cost. Specifically the cost function for both firms is C(qi) = 10qi. Suppose that

both firms have capacity constraints and can produce at most 30 units of goods.

Is (10,10) still a Nash equilibrium? Show that (40,40) is a Nash equilibrium.