QUESTION 8 The only two brewers in a small town compete in the following game. First Alacrity Ales brews, which decides the quantity of beer that Alacrity will be able to sell. Brown Beer knows how much Alacrity brewed and then brews their batch, determining how much beer Brown will be able to sell. Costs are CA = qi and cB = gqwhile the demand for locally brewed beer is D : 16 7 P. There are several questions using the same information above. Find the Subgame Perfect Nash Equilibrium ofthe Stackelberg game. What is the quantity that rm A chooses in the SPNE? QUESTION 9 The only two brewers in a small town compete in the following game. First Alacrity Ales brews, which decides the quantity of beer that Alacrity will be able to sell. Brown Beer knows how much Alacrity brewed and then brews their batch, determining how much beer Brown will be able to sell. Costs are CA = qi and CB = gqwhile the demand for locally brewed beer is D : 16 7 P. There are several questions using the same information above. Find the Subgame Perfect Nash Equilibrium ofthe Stackelberg game. What is the quantity that rm B chooses in the SPNE? 10 points 10 points Save Answer Save