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Assume the following market demand curve: P 26 - 2Q. Assume marginal cost is constant at $2. a. Find equilibrium price and quantity for firm

  1. Assume the following market demand curve: P 26 - 2Q. Assume marginal cost is constant at $2.

a. Find equilibrium price and quantity for firm 1 when firm 1is a Stackelberg leader. b. Find the equilibrium price and quantity for firm 2 when firm 2 is a Stackelberg follower. c.. Calculate the value of consumer surplus in the market. d. Calculate the value of the deadweight loss in the market. e. Calculate the value of profit for each firm.

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