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1. Suppose there is a Cournot duopoly comprised of firms a and b. Total industry output is the sum of output from both firms so

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1. Suppose there is a Cournot duopoly comprised of firms a and b. Total industry output is the sum of output from both firms so that Q = (qa + qb ). Industry demand is given by P = 60 - 3/2.Q. Both firms have identical cost functions, with Ca = 10 + qa and Cb = 25 + qb. a. Find the Cournot Nash Equilibrium. Show your work in the space below. b. Suppose that firm a is the leader in a Stackelberg Game. Find the Stackelberg Nash Equilibrium. Show your work. C. At the Stackelberg Nash Equilibrium social welfare is W = $ Show your work

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