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Consider two duopoly quantity-setting firms facing a marginal cost of $60 and the following market demand: p = 150 - q1 - q2 where q1

Consider two duopoly quantity-setting firms facing a marginal cost of $60 and the following market demand:

p = 150 - q1 - q2

where q1 and q2 denote the quantity sold by Firm 1 and Firm 2, respectively.

a) Determine the Cournot equilibrium.

b) Determine the Stackelberg equilibrium when Firm 1 moves first.

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