this question is has 3 parts.

Answer this question. (Total: 10 marks) Suppose that there are two firms in an industry that produce an identical product. The output of Firm A is denoted by gig, and the output of Firm B is denoted by gm, The cost function of Firm A is given by (3(qu = qAZ and the cost function of Firm B is given by C(qB] = E of. Let Qdenote the total market output, and Pdenote the price. The inverse demand curve in the market is given by P: 420 (2. Based on the information given, answer all the questions below: a) Calculate the CournotNash equilibrium output level and profit for each firm. (4 marks) b) Compare the profits earned by each firm in part (a) above. Is this outcome what you should expect, given the information? Explain what you think. (2 marks) c} Now, suppose that Firm A is the Stackelberg leader, and Firm B is the Stackelberg follower. Calculate the output level and profit for each rm. Comparing the profits of the two rms, do you think Firm A received any rst-mover advantage at all? Explain what you think. (4 marks) Enter your answer below this line. You may extend or contract the answerspace below ret the Iengfh ofyour ower