Exercise 1: Stackelberg in quantities = 10+qL Suppose we have two firms, a leader and a follower. The leader's cost function is given by CL(qL) and the follower's cost function is Cf(qf) = 5qf +5. Market demand is given by P(Q) = 250 - 5Q, where Q = 9 +91- a) (10 points) Find equilibrium price and quantities b) (15 points) Find profits, Consumer surplus and Total surplus