Two firms compete a la Stackelberg. Firm A has the following cost function

? ? ? (?) = 2 + 3? ?

and Firm B has the following cost function

? ? ? (?) = 3 + 2? ?

Suppose that the two firms operate in a market which inverse demand function is given by

? = 10- 2.5?

Two firms compete a la Stackelberg. Firm A has the following cost function TCAM) = 2 + 34A and Firm B has the following cost function TCB(q) = 3 + 243 Suppose that the two firms operate in a market which inverse demand function is given by P = 102.5Q a) If firm B is the leader and A the follower, which will be the quantity produced by each firm and the price charged in a Stackelberg equilibrium? qA= QB: D: b) If firm A is a leader and firm B is a follower, which will be the quantity produced by each firm and the price charged in the new Stackelberg equilibrium? ClA= ClB= D= c) If both form a cartel, which will be the quantity produced by each firm and the price charged if they maintain the agreement? CIA: ClB= D= d) Which of the 3 previous equlibrium, is the best one from consumers' point of view? D