Q1 Consider the following demand function, p = 1 Q, Q = 23:1 (1,, where (1, denotes rm i's output. Assume that the marginal cost of rm 1 is 0.1 and the marginal cost of rm 2 is 0.3. Suppose that rm 2 is the Stackelberg leader. a) Compute the Stackelberg equilibrium output per rm, price, and prof its. b) Would rm 2 prefer to play the Stackelberg game described above or the game described above in which instead of moving sequentially rms move simultaneously? Would rm 1 prefer to play the Stackelberg game described above or the game described above in which instead of moving sequentially rms move simultaneously