Question Completion Status: the market clearing price? 10 O 15 O 20 O 25 QUESTION 7 10 poi Consider a standard Stackelberg environment. Two firms produce a homogenous good. The total demand is @ - A - BP, where P is the market clearing price. Firm / faces the following cost function: TC(q,) = Mq, + F. Firm 1 chooses the quantity to supply first. Firm 2 chooses how much to supply after observing the quantity supplied from firm 1. In this environment, Firm 1 supplies more than firm 2 Firm 1 supplies less than firm 2 Firm 1 and firm 2 supply identical quantities. We cannot determine which firm supplies more. QUESTION 8 10 points Consider a standard Stackelberg environment. Two firms produce a homogenous good. The total demand is Q - A - BP, where P is the market clearing price. Firm / faces the following cost function: TC(q,) = Mq, + F Firm 1 chooses the quantity to supply first. Firm 2 chooses how much to supply after observing the quantity supplied from firm 1. In this environment, Total quantity suppled is larger than a monopoly market with an identical total cost function Q. Total quantity cunnied is smaller than a mananaly market with an idont total cost function Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save an DIY CH S 6 902618