2.3 Suppose the demand function is Q = 60 - 2p.

Firm A, the leader, acts before Firm B, the follower.

Both firms have a constant marginal cost of 6. Draw a diagram with Firm A’s output on the horizontal axis. Show the best response function of Firm B. On the diagram, identify the Nash-Cournot solution, the Stackelberg solution, and the cartel solution.