Suppose we have a market with two firms, and market demand Q = 18 - P and a cost c(Q) =1/2Q2

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Suppose we have a market with two firms, and market demand Q = 18 - P and a cost c(Q) =1/2Q2. Suppose that firm 1 has first mover advantage.

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?

d. Does firm 2 prefer this type of competition over Cournot competition?