B3. Consider a duopoly that faces a market demand given by P = 12,000-60Q, where P is product price and Q is market output. The two firms in the market have cost structures as follows: firm 1 has costs given by C1= 600q1, while firm two has costs given by C2=400q2, where subscripts indicate the respective firms. The output in the market is equal to the sum of the firm outputs. (a) Solve for the Cournot equilibrium values of price, market output and firm outputs. (b) Suppose firm 1 chooses its output level first and firm 2 follows. Solve for the Stackelberg equilibrium values of price, market output and firm outputs. (c) Draw the two reaction functions and clearly label the Cournot outcome and the Stackelberg outcome. Explain the rationale for the Cournot outcome. Why does the Stackelberg outcome differ (think in terms of the leader's behaviour)