Alex and Anna are only sellers of kangaroos in Sydney, Australia. Anna chooses her profit-maximizing number of kangaroos to sell, q₁, based on the number of kangaroos that she expects Alex to sell. Alex knows how Anna will react and chooses the number of kangaroos that she herself will sell, q₂, after taking this information into account. The inverse demand function for kangaroos is P(q₁ +q₂) = 2000 - 2(q₁+ q₂). It costs $400 to raise a kangaroo to sell.

1. Alex and Anna are Stackelberg competitors. _____ is the leader and ____ is the follower.
2. If Anna expects Alex to sell q₂ kangaroos, what will her own marginal revenue be if she herself sells q₁kangaroos? ____
3. What is Anna's reaction function, R(q₂)? _____
4. Now if Alex sells q₂kangaroos, what is the total number of kangaroos that will be sold? _______ What will be the market price as a function of q₂only?_____
5. What is Alex's marginal revenue as a function of q₂only?____ How many kangaroos will Alex sell? _______ How many kangaroos will Anna sell? ____ What will the industry price be? ________