Given the inverse demand function: P = 15 – 0.025X where X is the total quantity demanded. There are two firms in the market, each with a constant marginal cost of RM7.50.
Find the outcome for: a) Cournot model b) Cartel model c) Stackelberg model d) If the Cournot game is played repeatedly for infinite number of time, find the discount factor that will make cooperation sustainable.