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Reference the following information about the market demand function for questions 1 to 15. These questions...

Reference the following information about the market demand function for questions 1 to 15.

These questions are on different types of market structures – monopoly, perfect competition, Cournot oligopoly market, and the Stackelberg oligopoly market. The market demand function is given the following equation: P = 1600 – Q where Q is the industry’s output level. Suppose initially this market is served by a single firm. Let the total cost function of this firm be given the function C(Q) = 80Q. The firm’s marginal cost of production (MC) is equal to the firm’s average cost (AC): MC = AC = 80.

13) What will be the market price in this Stackelberg market?

14)Can you calculate the profit earned by the Stackelberg leader and the Stackelberg follower?

15) Can you identify the results we learned from solving this problem on market structure?

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