Step by step

4. Assume there are three identical firms in the industry. The market demand is P = 10 - Q, where Q = q1 + 92 + 93 and each firm has constant marginal (and average) cost of $ 4 per unit. a. What are the Bertrand equilibrium price and quantity b. Compute the Cournot equilibrium (market price, each firm's output) c. If firm 1 is a Stackelberg leader, how much will each firm produce and what will the price be? (20 points)