Essay
The inverse demand curve for a Stackelberg duopoly is P = 10,000 - 6Q.The leader's cost structure is CL(QL)= 15QL.The follower's cost structure is CF(QF)= 25QF.
a.Determine the reaction function for the follower.
b.Determine the equilibrium output levels for both the leader and the follower.
c.What are the profits for the leader?
For the follower?
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a.The follower's reaction function is QF ...View Answer
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