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Stackelberg Duopolists,Firm 1 and Firm 2,face Inverse Market Demand

Question 18

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Stackelberg duopolists,Firm 1 and Firm 2,face inverse market demand Stackelberg duopolists,Firm 1 and Firm 2,face inverse market demand   Both have marginal cost,   Firm 1 produces output Q<sub>1</sub> = 15 and Firm 2 produces output Q<sub>2</sub> = 7.5.What is the price level in this market and what is the level of industry profits (i.e.the sum of Firm 1 and Firm 2's profits) ? A)  P = 27.5; industry profits = 168.75 B)  P = 30; industry profits = 172.6 C)  P=32.5; industry profits = 180 D)  P=34; industry profits = 184.2 Both have marginal cost, Stackelberg duopolists,Firm 1 and Firm 2,face inverse market demand   Both have marginal cost,   Firm 1 produces output Q<sub>1</sub> = 15 and Firm 2 produces output Q<sub>2</sub> = 7.5.What is the price level in this market and what is the level of industry profits (i.e.the sum of Firm 1 and Firm 2's profits) ? A)  P = 27.5; industry profits = 168.75 B)  P = 30; industry profits = 172.6 C)  P=32.5; industry profits = 180 D)  P=34; industry profits = 184.2 Firm 1 produces output Q1 = 15 and Firm 2 produces output Q2 = 7.5.What is the price level in this market and what is the level of industry profits (i.e.the sum of Firm 1 and Firm 2's profits) ?


A) P = 27.5; industry profits = 168.75
B) P = 30; industry profits = 172.6
C) P=32.5; industry profits = 180
D) P=34; industry profits = 184.2

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