2. Problems 1. Suppose that the marginal costs of two firms competing à la Cournot are: CA = CB = 50. Capacity constraints are: kд = k³ = 50 per week. The weekly demand function is D(p) = 200 - p. INDUSTRIAL ORGANIZATION UC3M 2 a) Find the equilibrium prices and profits. b) Solve it for kA = kB = 30. c) Solve it for kA = kB = 150. d) Solve b) and c) assuming price competition (à la Bertrand). Win Wind