1. Two firms make identical scanner units. They are the only producers of these units. The firms are Cournot oligopolists and face the following demand: Demand: Q = 100 - 4P. The firms have the identical cost structures, where c(q) = 4q + 20
a) Compute price, total quantity, quantity per firm, and profit per firm for Cournot.
b) Compute price, total quantity, and profit if there was a single monopoly firm.
c) Compare the profit under Cournot and monopoly. Which market would you rather operate in?