M63 Consider a duopoly where differentiated rms compete in quantities with price functions given by 1 1 p1=20qlq2 and p2=2Uqzq1 and where rm 1 faces a constant marginal cost of 5 in production and rm 2 faces a constant marginal cost of 10 in production. {a} Suppose the rms set the quantities simultaneously and independently of one another. Determine the quantities, prices and prots of the two rms in the lCournot equilibrium. Explain the intuition behind possible differences in the quantities. prices and prots. lib} Suppose that. instead of simultaneous and independent decision making1 rm 1 rst decides on a quantity. Subsequently rm 2 sets a quantity after having observed rm 1's output. Determine again the quantities1 prices and prots of the two rms in the Stackelberg equilibrium