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There are 2 firms in Stackelberg competition. The Demand for this product is P = 240...

There are 2 firms in Stackelberg competition.

The Demand for this product is P = 240 - 2Q

Firm 1's cost function is C1 = 8Q1

Firm 2's cost function is C2 = 8Q2

Firm 1 sets their quantity first. You should find Firm 2's reaction function on your own paper. Then calculate Q1, Q2, and Price on your own paper.

1) What is Firm 1's Profit?

2) What is Firm 2's Profit?

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