Problem 1: Generalization (10 points) Consider a market with an inverse demand such as: with @ = 91 + 4: There are two firms with identical total cost functions; TO - Chi with # =1.2 1. If the two firms decide to form a cartel and act as a monopoly, prove that the market equilibrium is: 26 2 2. Now consider that the agreement was never carried out, so the firms compete with each other. Solve the profits for each firm and show that the solution is equal to: 41 = - 1 - 26 25 3. What makes the solution symmetric?' Exaplin. 4. From the solution in question (2). determine and interpret each of the following conditions: (@) If 40 # 241