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1. An industry has a demand function of QD = 500 250 . There are two P P rms producing in the industry. Firm 1

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1. An industry has a demand function of QD = 500 250 . There are two P P rms producing in the industry. Firm 1 has a marginal cost of .90 for each unit. Firm 2 has a marginal cost of .80 for each unit. a. Compute the price and quantities in the Cournot equilibrium. b. Compute the price and quantities in the Stackelberg equilibrium with rm 1 as the leader. c. Compute the price and quantities in the Stackelberg equilibrium with rm 2 as the leader. d. Compute the price and quantities in the Bertrand equilibrium

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