3.5 In the Stackelberg oligopoly example in Section 7.3, Firm B produces 300 planes and Firm A, using its best-response curve, responds by producing 150 planes. Once Firm A produces 150 planes, suppose that Firm B can change its production.

In this case, is 300 planes Firm B’s best response to Firm A’s production of 150 planes? If Firm A can next change its production, what is the likely outcome? How important is it for Firm B to commit to not changing the initial quantity of planes?