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Problem 4: Suppose that market (inverse) demand is linear and given by p(y) = 120 - y. Two firms compete in this market. Firm A has cost function ca(y) = 30y while its competitor, Firm B, has cost CB(y) = y2. a) Suppose Firm A is alone in this market and operates as a monopolist. Find the market price and quantity sold assuming Firm A maximizes its profits. bj Now suppose that Firms A and Bare Cournot competitors. Find the quantity produced by each firm and the market price. c) Finally suppose that Firms A and Bare Stackelberg competitors. Assume that Firm A is the 'leader' and sets its quantity first. Find the quantity produced by each firm and the market price. d) What are the deadweight losses associated with each of the three outcomes in parts a) - c)