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1. (30 points) Consider a Stackelberg competition environment where rm 1 chooses Q1 before rm 2 chooses Q2. Demand is given by P = 200

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1. (30 points) Consider a Stackelberg competition environment where rm 1 chooses Q1 before rm 2 chooses Q2. Demand is given by P = 200 (2621 +2Q2) and each rm has TC = 2Qi. A. Find rm 2's prot as a function Q1, Q2 B. Optimize and nd Q2 as a function of Q1 C. Find rm 1's prot as a function of Q1 D. Optimize and nd the equilibrium Q\"; and

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