Question: Please help with this practice question. There are 2 firms that sell a certain software, Microsoft and Oracle. Microsoft invented the software and so they

Please help with this practice question.

Please help with this practice question. There are 2 firms that sell

There are 2 firms that sell a certain software, Microsoft and Oracle. Microsoft invented the software and so they act as a market leader by first deciding how much of the software they are going to produce each month. Oracle observes this decision by Microsoft and then chooses how much they are going to produce. The marginal cost of producing the software is constant at $2 for both companies. The total market demand for the software is P = 84 - 0.2Q. According to the Stackelberg model, Microsoft will produce units of the software as the rst-mover and Oracle will produce units in response

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