Oligopoly  Consider a market in which the market demand curve is given by P = 18 - Q, Firm 1 has a marginal cost of 3, while Firm 2 has a marginal cost of 6. Find the Cournot equilibrium output. What are the Stackelberg equilibrium output if firm 1 act as the leader?

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A: b p1=112-q1-0.5q2p2=130-q2-0.5q1TR1=(112-q1-0.5q2)q1      =112q1-q12-0.5q1q2MR1=112-2q1-0.5q1…

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A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…