Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,360 Cost of goods sold 7,740 Depreciation 450 Earnings before interest and taxes $ 1,170 Interest paid 104 Taxable income $ 1,066 Taxes 373 Net income $ 693 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 220 $ 250 Accounts payable $ 1,350 $ 1,535 Accounts rec. 980 880 Long-term debt 1,110 1,305 Inventory 1,790 1,670 Common stock 3,360 3,010 Total $ 2,990 $ 2,800 Retained earnings 600 850 Net fixed assets 3,430 3,900 Total assets $ 6,420 $ 6,700 Total liab. & equity $ 6,420 $ 6,700 What is the days' sales in receivables for 2017?

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?