The market for management consulting services is a Stackelberg duopoly. Alvarez Inc. acts as the Stackelberg leader and The Beaulieu Group as the Stackelberg follower. An independent research firm has estimated that the daily demand for consulting services is: Q= 33-0.25P where Q is the quantity of consulting hours and Pis the hourly price of consulting services. The total quantity, Q, of consulting hours is equal to: Q=GA +98 where qA is the quantity of consulting hours sold by Alvarez Inc. and qg is the quantity of consulting hours sold by The Beaulieu Group. The demand function can be solved for the price as a function of the quantity, which is the inverse demand: P-132-4(A*98)· Each firm's marginal and average total cost of supplying an hour of consulting services is $36. The Beaulieu Group provideshours of consulting services daily. Alvarez Inc. provides hours of consulting services daily.

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