Firms 1 and 2 are Bertrand duopolists. Firm 1 has a marginal cost of MC1 = 5.00 and Firm 2 has MC2 = 6.01. The demand for their product is p = 20 − 7Q, where Q is the total quantity demanded. Assuming prices can only be set to the nearest cent, what are the profits for each firm in equilibrium?

A. profit1 = 3; profit2 = 0
B. profit1 = 2; profit2 = 0
C. profit1 = 1.5; profit2 = 1.5
D. profit1 = 1; profit2 = 1