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6. (25points) Consider a Stackelberg game of quantity competition between two firms. Firm 1 is the leader and firm 2 is the follower. Market demand

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6. (25points) Consider a Stackelberg game of quantity competition between two firms. Firm 1 is the leader and firm 2 is the follower. Market demand is described by the inverse demand P=1000-6Q. Each firm has a constant unit cost of production equal to 20. A. Solve for the Subgame perfect equilibrium. What is the market price? What are the quantities produced by the firms? What are the firms' profits? B. Now, suppose the two firms are competing on prices rather than quantities. Solve for the Subgame perfect equilibrium. What is the market price? What are the quantities produced by the firms? What are the firms' profits

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