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A Market That Follows the Price Leadership of a Barometric QDM=8000.50PQ D M = 800 - 0.50 P

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A market that follows the price leadership of a barometric firm has the following demand function:
QDM=8000.50PQ D M = 800 - 0.50 P The follower firms have the following aggregate marginal cost function:
MCF=2QMCM C F = 2 Q M C The barometric firm has a horizontal marginal cost curve equal to $600. Determine total industry output, market price, and the division of output between the barometric firm and the follower firms.

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