Firm 1's profit-maximizing output depends on how much it thinks Firm 2 will produce.If it thinks Firm 2 will produce nothing,its demand curve,labeled D (0),is the market demand curve.The corresponding marginal revenue curve,labeled MR (0),intersects Firm 1's marginal cost curve MC at an output of 50 units. Firm 1's profit-maximizing output depends on how much it thinks Firm 2 will produce. If it thinks Firm 2 will produce nothing, its demand curve, labeled D1 (0), is the market demand curve. The corresponding marginal revenue curve, labeled MR1 (0), intersects Firm 1's marginal cost curve MCl at an output of 50 units