Question: Problem 7. (10 points) A homogeneous products duopoly faces a market demand function given by P = 500-100 . Both firms have a constant marginal

Problem 7. (10 points) A homogeneous products duopoly faces a market demand function given by P = 500-100 . Both firms have a constant marginal cost of MC = 200. a. What would the equilibrium price in this market be if it were perfectly competitive? b. What are the firm's outputs in a Nash equilibrium of Cournot's model? c. What is the market price in a Nash equilibrium of Cournot's model? d. What would the equilibrium price in this market be if the two firms colluded to set the monopoly price

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