2. (Stackelberg competition)Consider two firms facing a market demand curveP= 2-Q, and each having a constant marginal cost of$1and no fixed costs. Assume the two firms competeStackelberg where firm 1 plays first. Calculate

a.Equilibrium firm and industrial quantities.

b.Market price.

c.Firm profits.

d.Calculate total welfare (the sum of consumer surplus and total industry profits).

e.Calculate the market shares of the two firms