2. [25 MARKS] Two firms, A and B, compete in a market for which demand is fixed, and made up of 100 consumers. Each consumer is willing to buy at most one unit of good and willing to pay maximum $10 for it. The game is sequential. In the first stage, firm A decides about its production capacity (i.e. how many units of the good it can produce). In the second stage, firm B sets its price. Finally, in the third stage, firm A sets its own price. Firm B has unlimited capacity. The product is homogeneous and we assume that if the firms set the same price, market demand will be shared equally. The marginal cost of production equals to 99 cents. None of the companies can sell (by law) at a price lower than one dollar. Which strategies will firm A and B play?