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Calculation of profits in a duopoly .

The following industry is a duopoly and the two firms each have total fixed costs of $50, but no marginal costs. The market demand curve is:

P = 60 - Q, where Q = Q₁ + Q₂

1. How much profits will each firm make when they are behaving as Cournot duopolists?
2. If instead of Cournot duopoly Firm 1 is the dominant firm and acts as a Stackelberg duopolist, how much profits will each firm make?
3. If the two firms collude how much profits will each firm make?

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