The accompanying article presents a decision facing Robert Gates, the US Secretary of Defense, who is trying to reduce costs for the US Air Force's F-35 fighter program. Theengines for the plane are currently produced by Pratt and Whitneyin Connecticut. Some lawmakers want to start a second production line for the engines in Ohio, run by GE and Rolls Royce. Mr. Gates argues that a single production line will save costs for the military, while Ohio lawmakers (who value the jobs the second line will create) say that competition will lower engine prices and increase the welfare accruing to the soleconsumer -the US military.As a budget analyst at the Pentagon, you have been asked to analyze two possible scenarios and advise Secretary Gates on production strategy. You determine that the military's demand curve for F-35 engines is given by P=1000-Q. The marginal cost of production (revealed in Congressional filings) is $120 mm per planefor Pratt and Whitney (the original incumbent) and $160 mm per planefor GE-Rolls Royce(the potential entrant).a.What is the quantity of engines produced if Pratt and Whitney is the monopolist supplier in the market? What is the price that the government has to pay for the engines?What is the consumer surplus for the military in this case?b.Now consider the duopoly case where Pratt and Whitney is the Stackelberg leader and GE-Rolls Royce is the Stackelberg follower. What is the price that the government has to pay for the engines? How many engines are produced and what is the consumer surplus for the military in this case?c.Should Secretary Gates agree to the second production line?Explain briefly