Question is in the attached image. Thank you!

In this question you will compare the Stackleberg and Cournot outcomes. Initially suppose firm 1 is the leader and firm 2 the follower. Suppose the firms have the following cost functions: C1 (y1) = 4y1, MC1 = 4 C2 (42) = 2 MC2 = y2 Suppose that the market inverse demand curve is given by p(Y) = p(y1 + y2) = 20-(y1 + y2). Marginal revenues are given by MR1 = 20-2y1 -2 and MR2 = 20-y1 - 2y2. (Hint: Under the Stackleberg game the leaders marginal revenue is given by MRLeader = = (20 - 241) a) Calculate y1, yz and p(y1 + 2) and the profits for each firm under a Stackleberg model. b) Repeat the excercise assuming firms choose output quantities simultaneously (Cournot model). c) What is the difference in your results