Suppose there are two firms operating in a market.

(Stackelberg Duopoly) Suppose there are two firms operating in a market. The firms produce identical products. The marginal cost for each firm is constant at MC = 20. There are no Fixed Costs. Also, the market demand is given by P = 100 -5Q, where Q= q1 + q2 is the total industry output. The following formula will be useful: If Total Revenue = aq - bq2 then Marginal Revenue = a -2bq Suppose Firm 1 chooses its quantity first. Firm 2 observes q1, and then chooses q2. How much output will Firm 1 produce in the Stackelberg-Nash Equilibrium