Consider aduopolistic market wheredemand is given byP= 36 - 3Q,where Q = Q1 + Q2. For each duopolist, the constant per unitmarginal cost is $18/unit and fixed costs are zero. a. Assume firstthat the duopolists hold Cournot conjectures when they make theirchoices. Find the Cournot equilibrium price, quantity, and profits.b. Now find the equilibrium price, quantity, and profits assumingthe duopolistic competition as Bertrand. c. Find the equilibrium umprice, quantity, and profit for each firm, assuming the firms actas a Stackelberg leader and follower, with Firm 1 as theleader.
