Question: please explain step by step 4. (12 points) Suppose that firm 1 in the market described in question 1 has first mover advantage. (Market demand

please explain step by step

4. (12 points) Suppose that firm 1 in the market described in question 1 has first mover advantage. (Market demand is Q = 18 - P and both firms have the same cost C(Q) = 702) a. What do we call a market where two firms move sequentially? b. Set up and solve for firm 1's output, firm 2's output, market output, and equilibrium price. Show all work for each step. c. Do consumers prefer this over the Cournot equilibrium you described in question 4? d. Does firm 2 prefer this type of competition over the Cournot competition

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