The Principal-agent problem. PLease expain more detail in diagram

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Q: functions P₁ = 63-4Q1 P2 = 105-5Q2 Pkets described by the inverse demand P3=75-6Q3, where Q₁ is the…

A: Given:  Demand in the first market: P1 = 63 - 4 Q1Demand in the second market: P2 = 105 - 5 Q2Demand…