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3. MBI and Pear are the only two producers of computers in a certain country. MBI started producing computers earlier than Pear. MBI costs of
3. \"MBI\" and \"Pear\" are the only two producers of computers in a certain country. \"MBI\" started producing computers earlier than \"Pear.\" \"MBI\" costs of production are given by 01(y1) = y? \" Pear\" 's cost function is 02 (y2) = 5m. The national demand for computers is 3/13 = 106 105p. (a) Calculate the Stackelberg equilibrium in which \"MBI\" is the leader in this market. Indicate output levels, market price and prots of each rm. (b) Suppose instead that both rms enter this market at the same time. Calculate the Cournot equilibrium and compare it to the situation in part (a)
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