Use the photo at exercise 14 to solve the problem below  With the Firm Y response function Qy=600-1/2Qx and the Firm X response function Qx=600-1/2Qy  Imagine that firm X chooses their quantity first, then firm Y observes the quantity of firm X and chooses their own quantity.  What quantities will they end up choosing?  Is there a first or second-mover advantage here?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Use the photo at exercise 14 to solve the problem below 

With the Firm Y response function Qy=600-1/2Qx

and the Firm X response function Qx=600-1/2Qy

 Imagine that firm X chooses their quantity first, then firm Y observes the quantity of firm X and chooses their own quantity.  What quantities will they end up choosing?  Is there a first or second-mover advantage here? 

[You may assume that firm X can only choose quantities that are multiples of 200.  This prevents you from having to deal with prices that are not on the schedule. just a little thinking about how equilibrium works in a sequential-move game.  Oh, and just give me the quantity for each firm, don't worry about giving me a complete strategy for firm Y.]

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