Assume there are two firms, 1 and 2, that compete in output, products are homogeneous, and the inverse market demand is p = a – Q, where Q = q1 + q2. Assume that production costs are zero for simplicity. a. Find the NE (Cournot) price, output, and profits of each firm if this is a static game. b. Find the SPNE if this is a dynamic game where firm 1 chooses output first. c. Find the cartel equilibrium to this game. d. Use a graph of best-reply and isoprofit functions to describe the NE, SPNE, and cartel equilibrium for problems A, B, and C above. e. Use a graph of best-reply and isoprofit functions to show that each firm has an incentive to increase its output from the cartel level