Q1 [MONOPOLY, COURNOT AND STACKKLARNG'S MODEL OF OLIGOPOLY] The market demand curve in a commodity chemical industry togiven by Q where Q is the market demand per month and P is the market price in do (a) (5 marks) Suppose there is only one firm in the market. The margin the firm is $10 per unit. Calculate the monopoly price and quantity. equilibrium using a graph. Now suppress there are two firms in this industry, Firm 1 and Firm 2. Back an identical constant marginal crat of $:0 per unit. Assume the competiti market is described by the Cournot model. (b) Find Firm 1 and Firm 2's boat-napone functions and draw a graph them simultaneously. (c) What is the Nash Equilibrium price and quantity? Now suppose that the firms are playing the Stackedberg game instead. Fire Starkelberg leader and Firm 2 is the Starkelberg follower. (d) What is the Stackelberg equilibrium price and quantity of cach firm? (c) Explain the difference between the Stackedberg game and Cournot Cat (f) Calculate and compare the welfare kee (DWL) of the coonomy under the Cournot and Stackedborg equilibrium