In a homogeneous products duopoly, each firm has a marginal cost curve MC= 10, i= 1,2. The market inverse demand curve is P= 50−Q, where Q = Q1+Q2.   a) What would be the equilibrium price in this market if firms acted as price-taking firms?   b) What would be the equilibrium price in this market if the two firms acted as a profit-maximizing cartel? Obtain the Lerner index   c) What would be the Cournot equilibrium quantities, price and profit in this market? Obtain the Lerner index of each firm and compare it to b)

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