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A) Two firms compete in a market to sell a standardized product and the inverse demand in the market is P = 400 - Q

A) Two firms compete in a market to sell a standardized product and the inverse demand in the market isP = 400 - QwhereQ = Q1+ Q2.The cost functions are:C1(Q1) = 8Q1andC2(Q2) = 36Q2.If this market is characterized by aStackelbergoligopoly, what is the optimal amount for the leader (firm 1) to produce?

B) Two firms compete in a market to sell a standardized product and the inverse demand in the market isP = 400 - QwhereQ = Q1+ Q2.The cost functions are:C1(Q1) = 8Q1andC2(Q2) = 36Q2.If this market is characterized by aStackelbergoligopoly, what is the optimal amount for the follower (firm 2) to produce?

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