5- (Total of guts) Consider the duopoly between Microsoft (M) and Apple {A}. For simplicity, let us assume that each company sell exactly the same computer [i.e. it is NOT a differentiated product]. The market demand is given by P=500-(|M+q.n] where qM and q; are the quantities of computer being produced by Microsoft and Apple respectively. Microsoft has a cost of 6 for each computer they produce while Apple has a cost of 8 per unit they produce. For each of the equilibrium you will be asked to solve, make sure to nd the equilibrium price as well as the equilibrium quantities for each of Microsoft and Apple. a. (pt_s} Solve for the Cournot equilibrium. b. (pt_s} Assuming Microsoft move rst, solve for the Stackleberg equilibrium. c. (55315} Compute the profits for both Microsoft and Apple from the M equilibrium solved in part a} as well as the prots for both Microsoft and Apple from the m equilibrium solved in part b. Compared the results. (:1. (5pts) Now, assuming Apple moves first, solve for the We equilibrium as well as both firms' profit. Compare your results with part b and c