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a) Briefly distinguish between the Cournot duopoly model and that of Stackelberg

b) Suppose the inverse market demand curve for a telecommunications equipment is P = 100 - 2Q. Suppose there are two firms with constant marginal cost $4. Assuming they behave as Cournot duopolists, what will be the price and total industry output?

c) The inverse market demand curve for a Stackelberg leader and follower is given by P = 60 - 2Q. If each has a marginal cost of $2, what will be the equilibrium quantity and price for each producer?

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